As the world’s top investment manager and financial market journalist, I bring you the latest insights on gold prices and their reaction to US CPI data. Gold has been holding steady above $2,500, with buyers eyeing a retest of record highs at $2,532.
Gold price risks a big reaction to US CPI data
Gold traders are on edge as they await the critical US Consumer Price Index (CPI) data, which could determine the future of gold prices. A positive CPI reading could trigger a US Dollar recovery, while a softer-than-expected data could push gold prices to new highs.
Currently, the market is pricing in a 33% chance of a 50 bps rate cut by the Fed, which could have a significant impact on gold prices. The US Dollar has been under pressure, thanks to the USD/JPY sell-off and cautious trading ahead of the US Presidential debate.
Gold price technical analysis: Daily chart
From a technical perspective, gold prices remain bullish, with buyers aiming for a breakthrough the record high of $2,532. However, a correction could occur if prices fail to sustain above the 21-day SMA at $2,503.
In conclusion, the upcoming US CPI data is crucial for investors as it could impact the direction of gold prices. Stay tuned for more updates on this developing story and make informed decisions based on the latest market trends.