Gold Under Pressure Below $4,700, USD Strengthens Ahead of US PPI
Gold prices (XAU/USD) remained under pressure during the European session on Wednesday (May 13), trading slightly below $4,700 as a strengthening US dollar extended gold's decline for a second day. This pressure was triggered by hotter-than-expected US inflation data, with headline CPI at 3.8% year-on-year and core inflation at 0.4% mom and 2.8% year-on-year, respectively. This prompted a repricing of policy expectations and led the market to price in around a 35% chance of a Fed rate hike by year-end.
The rise in interest rate expectations also lifted US Treasury yields (long-dated near 5.0% and short-dated near 4%), which generally weakens the appeal of non-yielding gold. (asd)
Gold Price at the Time of Release of This Analysis is at $4,688
- Buy if the price moves to $4,704
- Sell if the price moves to $4,694
Resistance 2: $4,719
Resistance 1: $4,709
Support 1: $4,689
Support 2: $4,679
Note: This article is analytical and not a definitive reference. Please consider the impact of fundamental and technical developments on trading before making any investment decisions.
Source: Newsmaker.id