Gold today: There are signs of discount
Updated
Hello everyone! After several consecutive days of gains, the price of gold today, October 13th, experienced a decline as inflation data in the United States cooled down, causing the US dollar and US bond yields to rise.
Global information: The US announced that the Consumer Price Index (CPI) on a yearly basis increased by 3.7%, higher than the forecasted 3.6%. However, the core CPI, which excludes food and energy prices, decreased from 4.3% to 4.1%, meeting market expectations. With inflation in the US declining and a strong job market, it is expected that the Federal Reserve (FED) will raise interest rates in November 2023 and maintain high interest rates for a longer period.
Result: The value of the US dollar surged after these announcements. The yield on the 10-year US bond rose to 4.65%, while the 2-year bond reached 5.07%.
Under the pressure of the US dollar and US bonds, speculators are concerned that the price of gold will plummet after reaching $1,885 per ounce. Therefore, they took the opportunity to sell and make a profit. As a result, the global price of gold today dropped by $15 to $1,870 per ounce.
Forecast: Using Fibonacci retracement, gold has reached the perfect level at 0.618, indicating a potential decline with successive levels of decrease at $1,869, $1,849, and $1,838.
Global information: The US announced that the Consumer Price Index (CPI) on a yearly basis increased by 3.7%, higher than the forecasted 3.6%. However, the core CPI, which excludes food and energy prices, decreased from 4.3% to 4.1%, meeting market expectations. With inflation in the US declining and a strong job market, it is expected that the Federal Reserve (FED) will raise interest rates in November 2023 and maintain high interest rates for a longer period.
Result: The value of the US dollar surged after these announcements. The yield on the 10-year US bond rose to 4.65%, while the 2-year bond reached 5.07%.
Under the pressure of the US dollar and US bonds, speculators are concerned that the price of gold will plummet after reaching $1,885 per ounce. Therefore, they took the opportunity to sell and make a profit. As a result, the global price of gold today dropped by $15 to $1,870 per ounce.
Forecast: Using Fibonacci retracement, gold has reached the perfect level at 0.618, indicating a potential decline with successive levels of decrease at $1,869, $1,849, and $1,838.
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