The price of gold surpassed $4,325 per ounce, recovering from a slight decline in the previous session. The inflation data, to be published on Thursday, will be closely monitored to understand how it may affect the Federal Reserve's readiness for further rate cuts.

The rise in gold prices was also influenced by events in Venezuela, where President Donald Trump ordered a blockade of all sanctioned oil tankers. The American leader is ramping up pressure on his Venezuelan counterpart, Nicolas Maduro, against the backdrop of military buildups in the region and threats of ground strikes.

Gold is traditionally viewed as a safe-haven asset that investors turn to during times of economic and geopolitical uncertainty. Previously released U.S. labor market data, although initially causing volatility, ultimately strengthened confidence in the resilience of the American economy; however, the anticipated inflation data remains a key factor that could change the situation.

Additionally, the escalation of tensions in Venezuela, like any geopolitical risks, heightens demand for gold. Instability in the region could impact global oil supplies and add further uncertainty to financial markets.

It is worth noting that this year, the precious metal has risen by approximately two-thirds and is on track for its best annual performance since 1979. The surge is attributed to active purchases by central banks and a general outflow of investors from government bonds amid declining interest rates.

The appointment of a new Fed chairman is also concerning, as it will provide additional signals regarding monetary policy next year. Trump, who has called for aggressive rate cuts, is scheduled to interview Federal Reserve Governor Chris Waller today regarding his nomination. One or two more interviews are expected this week, with the announcement of who will head the Fed slated for early January. The softer the Fed's position, the higher the demand for gold.

As for the current technical outlook for gold, buyers need to reclaim the nearest resistance at $4,372. This will allow them to target $4,432, above which it will be quite challenging to break through. The furthest target will be the area around $4,481. In the event of a decline in gold, bears will attempt to take control of $4,304. If successful, a breakout of this range will deal a significant blow to bullish positions and push gold down to a low of $4,249, with the potential to drop to $4,186.