Gold holds around record high

Gold is set to end a run of three straight weekly gains.

Yet, spot gold is still holding around its new all-time high, posted just a week ago.

Bullion has remained fairly resilient despite this week’s hotter-than-expected US CPI and PPI data, which may force the Fed to delay its rate cut plans.

Bullion easing away from severely overbought conditions

This recent pause may also be the precious metal's attempt to clear some of the froth after its stunning ascent since March 1st.

Once gold's 14-day relative strength index (RSI) eases back below the 70 line and away from "overbought" conditions ...

This could set a stronger base for bullion bulls to chase even higher heights!

Markets are on the lookout next for the Fed’s incoming dot plots as the next major catalyst for gold.

• Should FOMC members now prefer fewer rate cuts than the previously forecasted 75 basis points for this year, that may cause spot gold to tumble away from its record high.
   
• However, if Fed officials adhere to the existing dot plot and warm up to the idea of lowering its benchmark rates starting mid-year, that should shore up support for the precious metal.