XAU#16: Higher-than-expected CPI Will Gold Continue?
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💎 💎 💎 Gold has corrected to the 286x area after last night's CPI data. Today we continue to plan for gold. 💎 💎 💎
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1️⃣ **Fundamental Analysis:**
🔴Higher-than-expected US Inflation, Short-term Gold Volatility
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1️⃣ January CPI increased by 3%, Core CPI increased by 3.3%, higher than forecast, reducing expectations of Fed rate cuts this year.
2️⃣ USD and bond yields increased (10-year: 4.62%), putting pressure on gold.
3️⃣ Markets cut interest rate cut expectations from 3 to 1, may not cut if PPI remains high.
4️⃣ Gold fluctuates but still has long-term prospects
⚫Gold prices fell after CPI data, but quickly recovered thanks to safe-haven demand.
⚫Bond yields and a stronger USD put pressure on gold, but if the economy weakens, gold could find long-term support.
⚫Factors such as persistent inflation, economic recession and geopolitical instability could still push gold higher in the future.
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Conclusion
Higher-than-expected CPI data reduced expectations of Fed rate cuts, sending US stocks tumbling and the USD soaring. Powell stressed the need to assess further factors before changing monetary policy. Investors need to keep an eye on the upcoming PPI and PCE data for a clearer view of inflation.
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2️⃣ **Technical analysis:**
🔹 **D frame**: As you can see yesterday closed with a long-legged pinbar. The uptrend of gold is still holding
🔹 **H4 frame**: The uptrend structure on H4 frame is also holding. You can see the price touching the H4 trendline and reacting strongly
🔹 **H1 frame**: You can see H1 is at the old resistance zone. We can wait for the price reaction here to consider setting up a position.
3️⃣ **Trading plan:**
⛔ Gold is currently still in a multi-frame uptrend and still has the basis to set a new peak. However, the price has gone all day and there has been no significant correction. The SELL option will not be considered unless there is a clearer price reaction at the current resistance area.
✅ The current priority is still looking for opportunities to BUY in line with the main trend. You can refer to the plan in the H1 frame plan.
💪🚀 **Wish you successful trading!**
💎 💎 💎 Gold has corrected to the 286x area after last night's CPI data. Today we continue to plan for gold. 💎 💎 💎
————————————————————————
1️⃣ **Fundamental Analysis:**
🔴Higher-than-expected US Inflation, Short-term Gold Volatility
————
1️⃣ January CPI increased by 3%, Core CPI increased by 3.3%, higher than forecast, reducing expectations of Fed rate cuts this year.
2️⃣ USD and bond yields increased (10-year: 4.62%), putting pressure on gold.
3️⃣ Markets cut interest rate cut expectations from 3 to 1, may not cut if PPI remains high.
4️⃣ Gold fluctuates but still has long-term prospects
⚫Gold prices fell after CPI data, but quickly recovered thanks to safe-haven demand.
⚫Bond yields and a stronger USD put pressure on gold, but if the economy weakens, gold could find long-term support.
⚫Factors such as persistent inflation, economic recession and geopolitical instability could still push gold higher in the future.
————————————————————————
Conclusion
Higher-than-expected CPI data reduced expectations of Fed rate cuts, sending US stocks tumbling and the USD soaring. Powell stressed the need to assess further factors before changing monetary policy. Investors need to keep an eye on the upcoming PPI and PCE data for a clearer view of inflation.
—————————————————————————
2️⃣ **Technical analysis:**
🔹 **D frame**: As you can see yesterday closed with a long-legged pinbar. The uptrend of gold is still holding
🔹 **H4 frame**: The uptrend structure on H4 frame is also holding. You can see the price touching the H4 trendline and reacting strongly
🔹 **H1 frame**: You can see H1 is at the old resistance zone. We can wait for the price reaction here to consider setting up a position.
3️⃣ **Trading plan:**
⛔ Gold is currently still in a multi-frame uptrend and still has the basis to set a new peak. However, the price has gone all day and there has been no significant correction. The SELL option will not be considered unless there is a clearer price reaction at the current resistance area.
✅ The current priority is still looking for opportunities to BUY in line with the main trend. You can refer to the plan in the H1 frame plan.
💪🚀 **Wish you successful trading!**
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