The price of gold is attempting to consolidate. The U.S. unemployment data released last Friday strengthened expectations that the Federal Reserve will begin cutting interest rates in June. This is keeping the yield on U.S. Treasury bonds at a low level, weakening the U.S. dollar, thereby aiding the precious metal.

Ahead of the publication of the latest U.S. consumer inflation data, scheduled for Tuesday, and against the backdrop of overbought conditions on the daily chart, bulls are reluctant to open new positions.

These data will play a key role in shaping expectations regarding the Fed's path of rate cuts, which, in turn, will stimulate demand for the U.S. dollar and give a new impetus to the non-yielding yellow metal. At the same time, the Fed's readiness to cut rates, coupled with the prevailing cautious market sentiment, may continue to provide support to the precious metal and limit any corrective declines.

From a technical standpoint, the breakthrough of $2,145, which occurred last week, favors bulls and supports the prospects of additional profit. However, the Relative Strength Index (RSI) on the daily chart demonstrates overbought conditions. Therefore, before making new bullish bets, it would be prudent to wait for some short-term consolidation or a moderate pullback.

However, any significant corrective decline will find solid support near the Friday swing low, around $2,154, which can now become a key reference point for intraday traders. A convincing break below Friday's low may trigger technical selling and push the gold price towards intermediate support at $2,25 on the way to the round figure of $2,100.

On the other hand, those looking to buy gold should wait for a breakout above the $2,200 mark. Beyond that, the XAU/USD pair will enter uncharted territory and rely on its recent strong upward momentum.