Gold opened this week’s trading on a slight rise after finding a solid support at $2970, where the Bollinger Bands is providing positive signals as the price moves above its lower line. Meanwhile, the price is eyeing penetration through the indicator’s middle line, where stability above it would help prices resume their upward direction on the medium term.

Currently, gold is trading beneath the weekly pivot point at $3073, looking forward to clinging above it. A sustained move above it could lead to further gains towards resistance levels at $3131 then $3225. 

On the downside, if gold fails to be stuck above the weekly pivot point at $3073, it may indicate a loss of momentum, potentially driving the price lower to the first support level at $2979. A break below the aforesaid level may dump prices to $2921.

On the economic data front, investors are waiting for key economic data later this week, particularly the Consumer Price Index (YoY). Analysts expect the annual CPI to retreat from 2.8% to 2.6%. A higher-than-expected reading could prompt the Fed to reconsider cutting interest rates soon.

Additionally, the minutes from the Federal Open Market Committee (FOMC) meeting will provide insights into future interest rates. Gold could rise if there are hints of a rate cut, while any indication of rate hikes or stable rates should negatively impact gold.

Markets are also awaiting U.S. jobless claims data, with expectations of an increase to 223,000 from the previous 219,000. If the data is worse than expected, it could raise concerns about the health of the labor market, which would increase pressure on the dollar.