The gold market continues to display a robust bullish trend, firmly supported by ongoing safe-haven demandDespite experiencing a brief surge to $2,942 per ounce on Tuesday, gold prices quickly retraced by about $60, settling around the $2,880 markThis level of support has remained intact, leading many to question whether a trend reversal is truly underway.

While fluctuations are common in such a volatile market, it is critical to emphasize that the overarching bullish trend in gold remains unchangedFollowing Tuesday's peak and subsequent pullback, the market is expected to enter a phase of consolidation on Wednesday, characterized by less aggressive price movementsTraders should remain vigilant, monitoring for potential new highs, as the fundamental factors supporting gold's value are still very much in play.

Silver, on the other hand, has faced its own challengesAs previously noted, the $32.5 resistance level was significant for silver, which has seen an uptick in its price but has also experienced a reactionary dip, stabilizing above $31.5 after a drop to $31.2. This behavior indicates a strong consolidation phase, though it lacks a clear directional bias at this time.

In the backdrop of these developments, crude oil prices have surged to around $73, with expectations of reaching $75. Since the decisive upward movement began on Tuesday, the outlook for oil remains decidedly bullish, suggesting that traders should prepare for further increases.

Federal Reserve Chairman Jerome Powell's remarks during a Senate Finance Committee hearing have added another layer of complexity to market dynamicsHe stated that given the "overall strength" of the economy, with low unemployment and inflation above the Fed's target of 2%, there is no rush to lower short-term interest ratesThis statement comes in the wake of his recent announcement regarding significant increases in tariffs on imported steel and aluminum, as well as the intention to implement reciprocal tariffs on all countries exporting to the U.S

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This backdrop has created a heightened awareness among investors regarding the potential implications of U.S. trade policy on inflation and economic stability.

As the market awaits the release of critical U.SConsumer Price Index (CPI) data, attention is focused on how this information might influence interest rate decisions moving forwardIn anticipation, analysts are particularly interested in the core CPI, which is expected to show a steady increase of 0.3% for the fifth consecutive monthShould this forecast hold true, it might provide the Federal Reserve with the data it needs to maintain its current interest rate policy, thereby supporting gold prices.

Despite a slight cooling of gold's absolute strength on Tuesday, when prices experienced a notable drop to around $2,882, the foundational bullish trend has not been underminedThe key support levels at $2,895 and $2,880 remain criticalAs long as these levels hold, the market is expected to maintain its bullish stanceThe reaction to the CPI data will be pivotal; if gold breaks below $2,880, it could signal a potential peakConversely, if the data fuels further demand, it might lead to renewed upward momentum.

From a technical perspective, the daily chart showed an initial bearish candle after a series of upward movements, yet it did not breach the essential 5-day and 10-day moving averagesThus, the bullish trend is still intactTraders are advised to consider positions near the $2,885 support or in proximity to $2,850. If the market does dip below $2,885, further declines towards $2,850 could be expected, but the overall sentiment remains one of cautious optimism.

Silver, impacted by the fluctuations in gold, also witnessed significant downward movement, hitting a low of $31.2. However, the market quickly rebounded to $31.9, re-establishing itself above the critical $31.5 thresholdThis resilience suggests that silver is still in a strong oscillation phase, with trading expected to range between $32 and $31.5 in the near term

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