XAUUSD 12 | Important Movement

- Gold prices soared over 2.25% on Thursday to its highest level since August 23 after a government report showed U.S. inflation cooled off a bit in October, lifting optimism that the Federal Reserve would adopt a less aggressive approach to tightening policy starting in December.
- The surprisingly weak consumer inflation report drove U.S. Treasury yields sharply lower as traders priced in an 85.4% probability of a 50 basis point rate hike in December. Gold rallied because lower yields tend to make non-yielding gold more attractive. In this case, short-sellers, looking for more aggressive rate hikes from the Fed, were forced to cover when the CPI news was released. Lower yields also made the greenback a less-attractive investment. This drove up demand for dollar-denominated bullion.
- The main trend is up according to the daily swing chart. The uptrend was reaffirmed on Thursday when buyers took out a pair of swing tops at 1738 and 1746.
- A sustained move over 1745 will indicate the presence of buyers. A sustained move under 1760 will signal the presence of sellers for some pullback.