Gold opened this week’s trading on a notable rise, as it hit a new record high at $2956 on Monday, where the Bollinger Bands is providing positive signals as the price moves above its middle line. Meanwhile, the price is eyeing a breach through the indicator’s upper line, where stability above it would help prices resume their bullish trendline on the medium term.

Meanwhile, gold is trading within a bullish channel, looking forward to penetrating $2968, which is the first weekly resistance level. A sustained move above $2968 could lead to further gains towards $3000. 

On the downside, if gold fails to break above $2968, it may indicate a loss of momentum, potentially driving the price lower to the weekly pivot point at $2923. A break below the aforesaid point may drive prices downward to weekly support levels at $2891 then $2847.

On the economic data front, markets are awaiting several important U.S. economic reports this week, most notably the Core Personal Consumption Expenditures index Price Index, the Federal Reserve’s favorite inflation measure. Analysts expect annual Core PCE inflation to retreat from 2.8% to 2.6% in January. A higher-than-expected reading could prompt the Fed to reconsider cutting interest rates in the near future.

In addition, U.S. Gross Domestic Product (GDP) for the fourth quarter last year is expected to grab investor’s attention. Growth may have slowed to 2.3% in Q4 from 3.1% in Q3. If the data comes in better than expected, it may boost investor confidence in the strength of the U.S. economy, which could have a negative impact on gold prices.

Finally, investors will carefully look for clues about U.S. monetary policy trajectory when several Federal Reserve officials speak throughout the week. Any commentary related to a possible rate cut could help gold extend its gains, while the opposite is true.