💡 XAUUSD: Reversal after PPI news
Updated
➡️This morning, the global gold price experienced a reversal, declining in response to the recent announcement from the US economy. The October Producer Price Index (PPI) reported a significant decrease, showing a 1.3% increase over the same period last year. This figure was notably lower than the anticipated 1.9%, and it marked a decline from the 2.2% increase observed in the previous month.
➡️The PPI index, a key metric reflecting changes in prices of goods sold by manufacturers, serves as a leading indicator for overall consumer price inflation. This suggests a forthcoming decrease in Consumer Price Index (CPI) inflation in the United States. The effective implementation of the US Federal Reserve's (Fed) monetary policy tightening is expected to persist.
➡️Earlier, on November 14, the US disclosed that the Consumer Price Index (CPI) for October exhibited a 3.2% increase compared to the same period last year. This represented a more significant decline from September's 3.7% increase and was slightly below the projected 3.3%. Notably, this marks the lowest level since March 2021.
➡️The PPI index, a key metric reflecting changes in prices of goods sold by manufacturers, serves as a leading indicator for overall consumer price inflation. This suggests a forthcoming decrease in Consumer Price Index (CPI) inflation in the United States. The effective implementation of the US Federal Reserve's (Fed) monetary policy tightening is expected to persist.
➡️Earlier, on November 14, the US disclosed that the Consumer Price Index (CPI) for October exhibited a 3.2% increase compared to the same period last year. This represented a more significant decline from September's 3.7% increase and was slightly below the projected 3.3%. Notably, this marks the lowest level since March 2021.
Note
➡️ Yesterday's gold bar D1 created a bearish pinbar price action model, showing that there is a selling force from above. Attempts to push prices up from the bottom are being blocked. D1 gold is maintaining its sideways structure. After creating a lower bottom recently, D1 gold started to edge slightly lower.Note
SELL Limit 1970 - 1972 Target : 1962
Stop loss : 1975
Note
David Meger, the head of metals trading at High Ridge Futures, expressed optimism about the positive CPI and PPI data. He emphasized that these favorable indicators are bolstering gold prices and fueling expectations of a sustained decrease in inflation. Meger also noted that this contributes to the anticipation that the Federal Reserve will follow through with interest rate hikes.
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