Gold Prices Hold Steady Ahead of Key US CPI
Gold Prices Hold Steady Ahead of Key US CPI Figures and Federal Reserve Decision
Gold prices, represented by XAU/USD, showed a slight uptick in early Tuesday trading, hovering around the $1,989.70 level. The precious metal has remained relatively flat in the last two sessions as traders eagerly anticipate the release of the US Consumer Prices Index (CPI) figures. These figures are poised to set the stage for Wednesday's crucial Federal Reserve monetary policy decision.
Gold Prices Await US CPI Figures:
As of now, gold remains in a holding pattern, awaiting the unveiling of the US CPI figures that will play a pivotal role in shaping market sentiment. The consensus among traders anticipates a modest decline in the headline data, projecting a 3.1% yearly increase compared to the 3.2% seen in October. Meanwhile, the core inflation reading, which excludes the more volatile elements of food and energy, is expected to hold steady at 4% year-on-year.
Technical Analysis: Gold Maintains Bearish Stance
From a technical standpoint, gold prices persist on the bearish side, residing below the 50-day Simple Moving Average (SMA) in the H4 timeframe. The outcome of the CPI report today is poised to act as a deciding factor, confirming whether the current downtrend will persist or if there's potential for a reversal from the current price levels.
Federal Reserve's Influence on Gold:
Looking ahead to Wednesday, the Federal Reserve is widely anticipated to maintain its benchmark interest rate within the 5.25%-5.5% band. The market focus will then shift to interest rate projections for the coming year and Federal Reserve Chairman Jerome Powell's press conference. Investors will be particularly attentive to any dovish hints in Powell's comments, as such signals could rekindle hopes of rate cuts in early 2024, potentially providing a fresh boost to gold prices.
Our preference
Short positions below 2030.00 with targets at 1965.00 & 1930.00 in extension.
Gold prices, represented by XAU/USD, showed a slight uptick in early Tuesday trading, hovering around the $1,989.70 level. The precious metal has remained relatively flat in the last two sessions as traders eagerly anticipate the release of the US Consumer Prices Index (CPI) figures. These figures are poised to set the stage for Wednesday's crucial Federal Reserve monetary policy decision.
Gold Prices Await US CPI Figures:
As of now, gold remains in a holding pattern, awaiting the unveiling of the US CPI figures that will play a pivotal role in shaping market sentiment. The consensus among traders anticipates a modest decline in the headline data, projecting a 3.1% yearly increase compared to the 3.2% seen in October. Meanwhile, the core inflation reading, which excludes the more volatile elements of food and energy, is expected to hold steady at 4% year-on-year.
Technical Analysis: Gold Maintains Bearish Stance
From a technical standpoint, gold prices persist on the bearish side, residing below the 50-day Simple Moving Average (SMA) in the H4 timeframe. The outcome of the CPI report today is poised to act as a deciding factor, confirming whether the current downtrend will persist or if there's potential for a reversal from the current price levels.
Federal Reserve's Influence on Gold:
Looking ahead to Wednesday, the Federal Reserve is widely anticipated to maintain its benchmark interest rate within the 5.25%-5.5% band. The market focus will then shift to interest rate projections for the coming year and Federal Reserve Chairman Jerome Powell's press conference. Investors will be particularly attentive to any dovish hints in Powell's comments, as such signals could rekindle hopes of rate cuts in early 2024, potentially providing a fresh boost to gold prices.
Our preference
Short positions below 2030.00 with targets at 1965.00 & 1930.00 in extension.
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