Gold price is attempting a minor comeback while within a familiar range below the $1,800 mark ahead of the all-important United States Consumer Price Index (CPI) data. FXStreet’s Dhwani Mehta analyzes how the yellow metal could react to inflation figures.
US CPI could impact Federal Reserve’s outcome
“Any upside surprise in the Core CPI data could prompt the Federal Reserve policymakers to revise higher their forecasts for the terminal rate, eventually impacting the US central bank’s Dot Plot chart, which will be announced on Wednesday.”
“Should the US Core Consumer Price Index beat estimates, it could trigger a US Dollar rally alongside the US Treasury bond yields, weighing negatively on the non-interest-bearing Gold price.”
See – US CPI Preview: Forecasts from 10 major banks, inflation appears to have peaked
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD continues to juggle below 0.6660 ahead of Australian Retail Sales and CPI data
The AUD/USD pair is demonstrating a back-and-forth action below 0.6660 from Friday’s session. The sideways performance in the Aussie asset is expected to conclude and a power-pack action will be witnessed.
EUR/USD bulls attack 1.0800 amid risk-on mood, focus on ECB’s Lagarde, US Consumer Confidence
EUR/USD extends the week-start recovery to 1.0800 during early Asian session on Tuesday, picking up bids to refresh the intraday high of late, as the risk-on mood joins the hawkish comments from the European Central Bank (ECB) officials.
Gold faces resistance around $1,960 as US banking jitters ease, Yields soar
Gold is juggling below $1,960.00 in the early Asian session. The upside for the Gold price seems restricted as fears of the United States banking debacle have eased. Therefore, investors have liquidated their positions in Gold and US government bonds.
90% of Ethereum supply leaves exchanges as regulators struggle to classify ETH as Security or Commodity
Ethereum is known not only as the second-biggest cryptocurrency but also as the second-generation cryptocurrency. The blockchain not only brought Decentralized Finance (DeFi) to the crypto space but also framed a target on its back following its Proof of Stake transition plan.
US Consumer Confidence Preview: No good news for Americans Premium
The United States will publish the March Conference Board Consumer Confidence index, and market players anticipate it has contracted to 101 from 102.9 in February.