Gold Moves in Choppy Boundaries ahead of U.S. CPI data, $18+ Volatility Likely in Gold; July 13, 2022
U.S. CPI & Core CPI m/m Results
The key event for the day is U.S.’s Inflation data scheduled 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. 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 rejects key support at $1,721 mark and hovers around $1,730 mark.
- The pair made intraday high at $1,730 and Low at $1,722 mark.
- A day chart and H1 chart with triple EMA suggest bearish trend for the time being.
- A sustained close above $1,730 on H1 chart requires for the upside rally.
- Alternatively, a consistent close below $1,720 on H1 chart will test further supports.
Take a look and do trade wisely!