Gold Bullish: Will economic data hold back its appreciation?

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During the Asian session, gold has experienced a significant price increase due to U.S. consumer data that revealed higher than expected inflation and fears that interest rates may be higher than expected. It has reached a high of $2,195.02 before retreating to $2,163, finding a temporary consolidation point there. Its previous range was between $2,100 and $1,962. While consumer prices have cooled expectations of interest rate adjustments by the Federal Reserve, the Fed is still far from its 2% annual inflation target. The odds of a June cut according to the CME Group are 64.9%, compared to 35.1% of staying unchanged.
Here the link from [url= cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html]CME - FEDWatch

A resilient U.S. economy scenario could influence a less attractive gold for investors, while a weakened economy with low demand and high inflation could have the opposite effect.

After a 4.6% rise during the Asia-Pacific market, gold experienced a 1.82% correction following the data generating the aforementioned cooling of expectations. The volume profile indicator price bell shows a strong uptrend, with a checkpoint at $2034, suggesting possible corrections towards that area. The RSI divergence indicator, currently at 73.85% overbought, indicates the possibility of a pullback towards $2094 before reaching new highs around $2,232. Industrial production, retail sales and unemployment data, as well as tomorrow's sovereign debt auctions are awaited to see how gold and oil perform this week.

Ion Jauregui - Analista AT




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