Gold Moves in Rigid Boundaries Ahead of U.S. CPI Results, 12+ Volatility Likely in Gold; May 12, 2021
U.S. CPI & Core CPI Data
Today’s U.S. session will be important U.S. Inflation data will come out within few minutes and later in U.S. session few FOMC members are scheduled to speak. 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:
XAU/USD: Gold moves in rigid boundaries ahead of U.S. CPI data. The pair made intraday high at $1,837 and low at $1,826 mark. A day chart suggests bullish trend while H1 chart suggests bearish trend in long run. A sustained close above $1,843 on H1 chart test key resistances. Alternatively, reversal from here will drag the parity down below $1,820 mark.
Key Resistances: $1,846, $1,851, $1,857, $1,864, $1,871
Key Supports: $1,826, $1,822, $1,817, $1,810, $1,802
Take a look and do trade wisely!