Gold Moves in Stiff Boundaries Ahead of U.S. CPI data, $10+ Volatility Likely in Gold; Feb 10, 2021
U.S. CPI & Core CPI Data
Today’s U.S. session will be important as U.S. has scheduled to release CPI, core CPI data and U.S. Fed Chair Powell’s speech. 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): Gold remains volatile ahead of U.S. Inflation data but faces key hurdle at $1,848 mark. A sustained close above $1,848 will test key resistances. Alternatively, reversal from here will drag the parity back below $1,830 mark. On H1 chart, triple EMA suggests the bullish trend while Day chart still signals the bearish trend for the time being.
Key Resistances: $1,848, $1,854, $1,862, $1,870, $1,877
Key Supports: $1,832, $1,827, $1,820, $1,815, $1,807
Take a look and do trade wisely!