Gold 10 May
Today we have CPI and Core CPI.
As you know CPI measures the monthly change in prices paid by U.S. consumers and is one of the most popular measures of inflation and deflation.
Always pay more attention to Core CPI since it’s more important than the normal.
If CPI data comes Lower Gold should go up cause its deflationary But if CPI data comes higher Gold should go down since its inflationary.
Meanwhile this the US debt ceiling crisis is further deteriorating investors sentiment, showing a genuine risk to stand on dollar.
A meeting between President Joe Biden and Republican policymakers on Tuesday ended without any tangible progress towards raising the federal debt limit, although Biden reiterated that the U.S. would not default. So, focus is now on key CPI inflation data due later in the day, which is likely to factor into the Fed’s decision on rate hikes. While inflation is expected to have retreated slightly in April from the prior month, it is still expected to read well above the Fed’s 2% annual target. Our concerns over slowing U.S. economic growth also supported safe haven demand for gold in recent weeks, as the country grapples with high inflation and interest rates. The Fed recently warned that the U.S. faces a mild recession this year.
We are at recession risk so Gold might be a good asset for long term.
I wish you all an amazing day and trade carefully since CPI is volatile.
As you know CPI measures the monthly change in prices paid by U.S. consumers and is one of the most popular measures of inflation and deflation.
Always pay more attention to Core CPI since it’s more important than the normal.
If CPI data comes Lower Gold should go up cause its deflationary But if CPI data comes higher Gold should go down since its inflationary.
Meanwhile this the US debt ceiling crisis is further deteriorating investors sentiment, showing a genuine risk to stand on dollar.
A meeting between President Joe Biden and Republican policymakers on Tuesday ended without any tangible progress towards raising the federal debt limit, although Biden reiterated that the U.S. would not default. So, focus is now on key CPI inflation data due later in the day, which is likely to factor into the Fed’s decision on rate hikes. While inflation is expected to have retreated slightly in April from the prior month, it is still expected to read well above the Fed’s 2% annual target. Our concerns over slowing U.S. economic growth also supported safe haven demand for gold in recent weeks, as the country grapples with high inflation and interest rates. The Fed recently warned that the U.S. faces a mild recession this year.
We are at recession risk so Gold might be a good asset for long term.
I wish you all an amazing day and trade carefully since CPI is volatile.
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