XAUUSD US CPI Scenarios
Hello
Gold probably opens with a gap, because Friday this market was closed.
We have a very important data tier 1 coming up next week from US. inflation data. This news can determine the next main movement of gold
Currently, the US dollar is in a downward trend. So are US bond yields
If the inflation data proves to be decreasing and under control, bond yields and the dollar index will continue to fall. And this leads to the flight of gold.
On the other hand, if inflation data proves that price pressures are still high and the Fed has a long way to go to control inflation, then inflation expectations will rise and this will hurt gold.
In the first scenario (decreasing inflation), gold can retest the ceiling of 2030.
In the second scenario (increasing inflation), gold can decrease to the levels of 1940.
And this is only the first step. The continuation of the process after the first step should be updated according to the conditions.
If the data is released exactly as predicted, the immediate reaction of the market should be checked. But since the forecasts are mostly bearish, there is a possibility that the dollar will fall.
Gold probably opens with a gap, because Friday this market was closed.
We have a very important data tier 1 coming up next week from US. inflation data. This news can determine the next main movement of gold
Currently, the US dollar is in a downward trend. So are US bond yields
If the inflation data proves to be decreasing and under control, bond yields and the dollar index will continue to fall. And this leads to the flight of gold.
On the other hand, if inflation data proves that price pressures are still high and the Fed has a long way to go to control inflation, then inflation expectations will rise and this will hurt gold.
In the first scenario (decreasing inflation), gold can retest the ceiling of 2030.
In the second scenario (increasing inflation), gold can decrease to the levels of 1940.
And this is only the first step. The continuation of the process after the first step should be updated according to the conditions.
If the data is released exactly as predicted, the immediate reaction of the market should be checked. But since the forecasts are mostly bearish, there is a possibility that the dollar will fall.
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