CPI vs. Core CPI: The Gold Market Movers

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Consumer Price Index (CPI) and Core CPI are key economic indicators that significantly impact XAUUSD (gold prices). CPI measures the overall change in consumer prices for goods and services, reflecting inflation’s pace. Core CPI, however, excludes volatile food and energy prices, providing a clearer view of underlying inflation trends. When CPI or Core CPI figures are higher than expected, it signals rising inflation, prompting the Federal Reserve to consider tightening monetary policy by raising interest rates. This typically strengthens the US dollar and puts downward pressure on XAUUSD, as gold becomes more expensive for holders of other currencies. Conversely, lower-than-expected inflation can weaken the dollar, driving up gold prices as investors seek inflation hedges and safe-haven assets. Traders closely monitor these releases to anticipate XAUUSD movements and adjust their strategies accordingly. XAUUSD

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