Gold turned down sharply after the release of the CPI index
World gold prices dropped sharply when the US announced that the March CPI increased stronger than expected, both on a monthly and yearly basis. The US March CPI rose by 0.4% month-on-month and 3.5% year-on-year, surpassing forecasts. The core CPI also increased by 0.4% monthly and 3.8% annually, exceeding expectations.
US real income in March increased by 0.3%, while construction permits rose by 9.3% in February, exceeding forecasts of a 4.3% decline. Both CPI and core CPI showed stronger than expected growth in March, indicating an increase in income and construction investment demand.
When inflation was strong, the market was worried about the interest rate policy of the US Federal Reserve (Fed). Because inflation is high, it is likely that interest rates at a peak level of more than 20 years will remain at that level for longer. High interest rates will put pressure on commodity markets, including gold. Investors pushed to sell gold to take profits right after the US CPI information was announced.
US real income in March increased by 0.3%, while construction permits rose by 9.3% in February, exceeding forecasts of a 4.3% decline. Both CPI and core CPI showed stronger than expected growth in March, indicating an increase in income and construction investment demand.
When inflation was strong, the market was worried about the interest rate policy of the US Federal Reserve (Fed). Because inflation is high, it is likely that interest rates at a peak level of more than 20 years will remain at that level for longer. High interest rates will put pressure on commodity markets, including gold. Investors pushed to sell gold to take profits right after the US CPI information was announced.
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Figures released Wednesday showed a key inflation measure has beaten economists' forecasts for three straight months. The core CPi index increased by 0.4% compared to February and increased by 3.8% compared to the same period last year, similar to the previous month.
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🔹Bloomberg on the former director of Israeli intelligence: Iran’s response may lead to a strategic change in the war and even to its end.
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This year, gold prices surpassed the psychological level of 2,000 USD/ounce and show no signs of slowing down. This impressive increase has forced financial institutions to adjust their outlook forecasts. The latest adjustment comes from giant Goldman Sachs with more positive future expectations.
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✅ If XAUUSD closes above $2,400 per troy ounce, the price could rise to test the all-time high and potentially head towards $2,500 per troy ounce, the next potential resistance level.
✅ Conversely, XAUUSD could return to $2,300 per troy ounce if the price does not close above $2,400 per troy ounce.
✅ Conversely, XAUUSD could return to $2,300 per troy ounce if the price does not close above $2,400 per troy ounce.
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