XAUUSD: Gold entered a bearish cycle due to USD strength
⭐️The global gold price continued its slight decline, with spot gold dropping by $4.5 to $1,908.2 per ounce. Futures gold traded at $1,932.5 per ounce in the last session, down $2.6 compared to the previous morning.
⭐️In the trading session on September 13th, the global gold market struggled to avoid a steep decline as the consumer price index (CPI) rose higher than expected in the previous month. Specifically, the US CPI in August increased by 3.7% compared to the same period last year, and the core CPI rose by 4.3% during the same period. The CPI was predicted to rise by 3.6% compared to the same period last year, compared to a 3.2% increase in the July report.
⭐️Market analysts have noted that the latest inflation data is prompting the market to consider the possibility of further interest rate hikes later this year.
⭐️In the trading session on September 13th, the global gold market struggled to avoid a steep decline as the consumer price index (CPI) rose higher than expected in the previous month. Specifically, the US CPI in August increased by 3.7% compared to the same period last year, and the core CPI rose by 4.3% during the same period. The CPI was predicted to rise by 3.6% compared to the same period last year, compared to a 3.2% increase in the July report.
⭐️Market analysts have noted that the latest inflation data is prompting the market to consider the possibility of further interest rate hikes later this year.
Comment:
⭐️According to deVere Group's Nigel Green, this latest CPI data is unlikely to influence the Fed's highly anticipated move to keep interest rates steady at its meeting next week, which is already being priced in by financial markets. . He also added that the increase in inflation gives the US Central Bank more reason to be hawkish in the future.
Comment:
⭐️Andrew Hunter, deputy director of US economics at Capital Economics, said the latest inflation data was not enough to convince the Fed to maintain its aggressive monetary policies. “While core prices were also slightly stronger than last month, there were few reports that convinced Fed officials that they needed to raise interest rates further. ... We still expect weaker economic growth and continued labor market normalization to help core inflation fall more sharply over the next 12 months.”
Comment:
⭐️A positive sign for the gold market is a recent preliminary report from the World Gold Council showing that central bank gold demand continues to dominate the precious metals market. According to many analysts, this is one of the biggest factors supporting prices in a complex environment of rising bond yields and the persistence of the USD.
TP1: 1908
TP2: 1904
SL: 1918