Gold prices are preparing for another important event - the US Federal Reserve's (Fed) day. The rising yields of US Treasury bonds are causing the US dollar to weaken, allowing gold prices to rise slightly.
The US Bureau of Labor Statistics (BLS) reported on Tuesday that the US Consumer Price Index (CPI) increased by only 0.1% in the month, resulting in a sharp drop in annual inflation from 4.9% in April to 4.0%. This is the smallest increase in 12 months since March 2021.
However, the core CPI rose 0.4% in the month and remains up 5.3% from a year ago, meeting consensus expectations for both measures.
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The prospect of Fed interest rates supports further tightening, reinforcing the upward trend of US Treasury bond yields, which has offset the immediate reaction of the US Dollar's rise due to the release of US CPI data.
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Comment: ⭐️Make a trading plan: ✅Sell the $1,965-$1,963 range when the price hits the resistance area. ✖️Stoploss: $1,970.
AND ALWAYS REMEMBER WHAT YOU NEED TO DO IS MANAGE RISK. GOOD LUCK !!!