Chance to Grab $10+ Movement in Gold During U.S. CPI Data
U.S. CPI & Core CPI Data
U.S. is going to release CPI as well as core CPI data 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. If the actual data releases higher than forecasted, it will be good for U.S. dollar.
Let’s see how Gold has reacted during the previous data release:
Note: Important to note here that despite positive economic data from U.S., the U.S. dollar has depreciated noticeably after the data release.
XAU/USD (Gold): Gold recovers slightly from previous losses and hovers around $1,920 mark. Today pair made intraday high at $1,925 and low at $1,910 mark. A sustained close above $1,930 requires for the upside rally. On the other side, consistent close below $1,899 will check key supports as well. Key support levels are seen around $1,892, $1,885, $1,876, $1,864, $1,857, $1,849, $1,840, $1,822, $1,809 and $1,787 mark respectively. Key resistances are seen at $1,932, $1,940, $1,947, $1,957 and $1,972 marks respectively.
Take a look and do trade wisely!