🥇 Gold gains ahead of US CPI data

12:35 PM October 13, 2021

📆 US CPI data for September to be released at 1:30 pm BST

Gold trades higher and the US dollar drops ahead of the US inflation data release. CPI data for September will be published at 1:30 pm BST and is expected to show price growth dynamics remaining unchanged compared to data for August. Headline CPI is forecast to stay unchanged at 5.3% YoY, just as it was in August. Core gauge is also seen remaining unchanged at 4.0% YoY. While markets see Fed's decision on tapering this year as a done deal, an unexpected acceleration in CPI inflation may boost the odds for a sooner announcement rather than later. Having said that, a beat in inflation data may boost the US dollar and hit a gold price. Traders should also keep in mind that CPI inflation is not the only event scheduled for today that will have an impact on the US dollar and gold - FOMC minutes will be released at 7:00 pm BST and may also boost volatility on those markets.

Gold rallied today, supported by weakness of the US dollar. Precious metal price broke above the resistance zone marked with the 38.2% retracement of the downward move launched at the beginning of September. Gold trades at the highest level since last week's NFP release. However, it should be noted that breaks above the aforementioned resistance were short-lived in the past two weeks and the gold price quickly returned to $1,750-1,765 trading range. 

Source: xStation5

Share:
Back

Forex and CFDs are leveraged products and can result in losses that exceed your deposits. Please ensure you fully understand all of the risks.

Losses can exceed deposits