US CPI number so hot, it made gold jump resistance
Gold had the largest reaction to a US CPI release in a long time. The price reached a temporary high of $1860s before calming down. It's important to note that GOLD has had several head fakes in the past two years and this move could reverse. Technically, it's the smart thing to wait for a retest of the $1835 level before buying...
Fundamentally, inflation is going to remain persistent as a result of supply bottlenecks. China PPI is at the highest level since the 1990s. High energy prices & Covid19 cases flaring up in the country have contributed to this. Since China is the global manufacturing hub, I expect the price rises to be transferred to importers & consumers around the world.
To summarize, Gold is going to have an amazing 2022.
Fundamentally, inflation is going to remain persistent as a result of supply bottlenecks. China PPI is at the highest level since the 1990s. High energy prices & Covid19 cases flaring up in the country have contributed to this. Since China is the global manufacturing hub, I expect the price rises to be transferred to importers & consumers around the world.
To summarize, Gold is going to have an amazing 2022.
