Gold Corrects Ahead of US CPI Release, Market Awaits Inflation Direction
Ahead of the release of US inflation (CPI) data, gold prices tended to correct as the market adopted a wait-and-see attitude and profit-taking after the previous increase. Investors held large positions in gold while awaiting confirmation of the direction of inflation, as the CPI will significantly determine expectations for the Fed's interest rate policy.
If inflation remains high or above expectations, the market expects interest rates to remain high for longer, driving a stronger US dollar and rising bond yields, thus depressing gold prices in the short term.
On the other hand, this correction in gold is still temporary and technical, not a major fundamental weakening. Global economic uncertainty, geopolitical risks, and the potential for further inflationary pressures from energy prices continue to maintain gold's role as a hedge. (alg)
The gold price at the time of this analysis was $4,589
- Buy if the price is at $4,596
- Sell if the price is at $4,582
Resistance 2: $4,610
Resistance 1: $4,603
Support 1: $4,575
Support 2: $4,568
Disclaimer
This article is analytical in nature and is not a definitive reference. Please consider fundamental and technical developments in trading before making any investment decisions.
Source: Newsmaker.id
