Gold technical analysis: Yellow metal surges near multi-month highs as the trade war escalates

EUR/USD erases losses and turns north toward 1.1700 in the European session on Tuesday. The pair draws support from renewed US Dollar struggle, as traders turn cautious ahead of the US CPI inflation data, due later in the day at 13:30 GMT.

GBP/USD picks up fresh bids and rises toward 1.3500 in European trading on Tuesday. Traders now await the US CPI data release for fresh direction on the US Dollar, which will significantly impact the pair's performance ahead. 

Gold remains on the defensive below the $4,600 mark through the first half of the European session though it remains close to the all-time peak, touched the previous day, amid a supportive fundamental backdrop. The US Dollar gains some positive traction following the previous day's decline and turns out to be a key factor acting as a headwind for the commodity.

The US Bureau of Labor Statistics will publish December’s Consumer Price Index report on Tuesday at 13:30 GMT. The report is expected to show that prices remained broadly stable in the last month of 2025. It’s a key read on inflation and could stir some short-term moves in the US Dollar.

News broke on Sunday night that the Federal Reserve received grand jury subpoenas from the Department of Justice on Friday, escalating the Trump administration's pressure on the nation's central bank. 

Meme coins, including Dogecoin, Shiba Inu, and Pepe remain under extreme selling pressure, recording roughly seven days of downtrend following the January 4 spike. The meme coins risk a bearish shift in momentum as buying pressure subsides, potentially leading to further declines.