Gold Trades Marginally Lower Ahead of U.S. CPI Data, $12+ Volatility Expected; Dec 10, 2020
U.S. CPI & Core CPI Data
U.S. will publish key economic indicators of CPI and Core CPI around 1330 GMT/1900 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:
XAU/USD (Gold): Gold depreciated noticeably in previous U.S. session and touched $1,825 mark. Today pair made intraday high at $1,842 and low at $1,828 mark. A sustained close above $1,840 requires for the upside rally. On the other side, consistent close below $1,838 will check key supports as well. Key support levels are seen around $1,822, $1,810, $1,802, $1,787, $1,776, $1,764, $1,758, $1,747, $1,740 and $1,720 mark respectively. Key resistances are seen at $1,840, $1,847, $1,862, $1,876, $1,882, $1,888, $1,894 and $1,902 marks respectively.
Take a look and do trade wisely!