Be Attentive Ahead of U.S. Inflation Results, $15+ Volatility Likely in Gold; April 13, 2021
U.S. CPI & Core CPI Data
U.S. has scheduled to release CPI as well as Core CPI results at 1230 GMT/1800 IST. Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate. Here the average price of various goods and services are sampled and then compared to the previous sampling. It the actual results comes greater than forecasted, it will be good for U.S. dollar.
Let’s see how Gold has reacted during the previous data release:
XAU/USD (Gold): Gold recovers slightly from previous losses and hovers around $1,730 mark. The pair made intraday high at $1,736 and low at $1,723 mark. A day chart and H1 chart with triple EMA confirms the bearish trend for the time being. A sustained close above $1,735 on H1 chart requires for the upside rally. Alternatively, a consistent close below $1,722 will check further supports too.
Key Resistances: $1,738, $1,742, $1,748, $1,754, $1,762
Key Supports: $1,722, $1,715, $1,708, $1,702, $1,694
Take a look and do trade wisely!