Gold tests key $2,050 resistance as real yields fall and USD weakens

Gold prices advanced 0.8% to $2,048 per ounce, approaching the critical $2,050 resistance level as declining real yields and a softer US dollar provided support. The move follows last week's lower-than-expected US CPI data, which came in at 3.1% year-over-year versus 3.3% forecast, reinforcing expectations for Federal Reserve rate cuts in 2025. Real yields dropped 15 basis points to 1.85%, making non-yielding gold more attractive to investors. Market positioning data shows net long positions increasing by 12% over the past week. The technical picture remains constructive with gold holding above its 20-day moving average at $2,035. A decisive break above $2,050 could open the path to $2,075, while failure to breach resistance may lead to consolidation between $2,035-2,050. The longer-term outlook remains bullish as monetary easing expectations persist.