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SpanishU.S. CPI Data May Create $10 Volatility In Gold
U.S. CPI & Core CPI Data
The key event for the U.S. session is U.S. CPI as well as core CPI 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. This data is derived by the average price of various goods and services are sampled and then compared to the previous sampling. If the actual data comes higher than expected, it will be good for U.S. dollar. This time market has anticipated lower reading of CPI (0.3 expected than 0.6 previous released), core CPI (0.2 expected than 0.6 previous released) both than previous one.
Let’s see how Gold has reacted during the previous data release:
August 12
July 14
Technical View:
XAU/USD (GOLD): Gold trades flat at $1,940 mark. Today pair made intraday high at $1,949 and low at $1,937 mark. A sustained close above $2,001 requires for the upside rally. Alternatively, reversal from key resistance will take the parity down towards key supports around $1,932, $1,922, $1,910, $1,902, $1,890, $1,862, $1,840, $1,822, $1,809 and $1,787 mark respectively. Key resistances are seen at $1,958, $1,970, $1,982, $1,994, $2,008, 2,020, 2,038 and $2,063 marks respectively.
Take a look and do trade wisely!
Good Luck
