Gold Turns Lower Ahead of U.S. Inflation Results, $17+ Volatility Likely; June 10, 2021
U.S. CPI & Core CPI Results
The key event for the U.S. session will be U.S. CPI as well as Core CPI data. 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 weakens ahead of U.S. Inflation Data and touches $1,876 mark in European hours.
- The pair made intraday high at $1,889 and low at $1,876 mark.
- A day chart suggests up trend in long run but H1 chart with triple EMA confirms bearish trend for the time being.
- A sustained close above $1,892 on H1 chart requires for the upside rally. Alternatively, a consistent close below $1,868 will check further supports.
Take a look and do trade wisely!