Cautious Ahead of U.S. CPI, Core CPI data, $10+ Volatility Expected in Gold; Jan 13, 2021
U.S. CPI, Core CPI Data
Today’s U.S. session will be important as U.S. will release CPI and Core CPI data at 1330 GMT/1900 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 average price of various goods and services are sampled and then compared to the previous sampling to get the Actual CPI figure for the month of December 2020.
Let’s see how Gold has reacted during the previous data release.
XAU/USD (Gold): Gold moves in rigid boundaries ahead of U.S. openings and CPI data both. In addition, markets have put their eyes on the U.S. political updates too. Today pair made intraday high at $1,863 and low at $1,853 mark. A sustained close below $1,840 will check key supports like $1,832, $1,827, $1,816 and $1,807 mark respectively. Alternatively, consistent close above $1,862 will tests key resistances at $1,867, $1,876, $1,885 and $1,894 mark respectively.
Take a look and do trade wisely!