Gold Jumps Back Above $1,850 mark ahead of U.S. CPI data, $15+ Volatility Likely in gold; May 11, 2022
U.S. CPI & Core CPI m/m Results
Today U.S. has scheduled to release CPI & 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. Here the average price of various goods and services are sampled and then compared to the previous sampling.
Let’s see how Gold has reacted during the previous data release:
- Gold recovers noticeably from previous losses and jumps back above $1,850 mark.
- Today pair made intraday high at $1,854 and low at $1,832 mark.
- A day chart and H1 chart with triple EMA suggest bearish trend for the time being.
- A sustained close above $1,858 on H1 chart requires for the upside rally.
- Alternatively, a consistent close below $1,844 on H1 chart will test further supports.
Let’s have a quick view on Russia – Ukraine latest updates:
- Ukraine’s natural gas pipeline operator on Wednesday stopped Russian shipments through a key hub in the east of the country, while its president, Volodymyr Zelenskyy, said.
- Lavrov says Russia does not want war in Europe.
- Russian gas transit through Ukraine almost 72 mcm on Wednesday.
- UN chief Guterres says Ukraine’s agricultural production must be available on international markets again.
- Russia is trying to reinforce exposed troops on Zmiinyi Island, which could enable it to dominate the northwestern Black Sea, Britain’s Ministry of Defence said.
- Ukrainians make gains in east, stop Russian gas at one hub.
- If the package passes the Senate as expected, US spending to bolster Ukraine’s defenses against Russia’s invasion and address the ensuing humanitarian crisis will soar to around $54 billion.
- U.S. House passes $40 bln bill to bolster Ukraine against Russian invasion.
- Biden hosts Italian PM for Ukraine talks.
Source: Times of india
Take a look and do trade wisely!