US consumer prices rose 0.6 percent month on month in April, significantly higher than expected. The price of gold rose to $1,850 after falling to $1,840 shortly after the data was released. Despite today’s bounce, persistent inflation poses downside risks to the yellow metal, TD Securities strategists report. Here are the comments of the analysts…
TD Securities analysts drew attention to the importance of $ 1,830 for the gold price
Analysts talked about the high US CPI data before the gold price. As we reported on Kriptokoin.com , the US CPI came in 0.3 percent higher than expected on a monthly basis, and core consumer data also came in higher than expected – up 0.6 percent. Inflation fell to 8.3 percent and 6.2 percent in April, higher than expected. According to experts, this may indicate that inflation is more robust than the US Federal Reserve (FED) expected.
According to analysts, the fact that CPI data is driven by rents and services indicates the existence of price pressures. It is also stated that it may manifest itself in the form of upward pressure on wages. In this case, it is stated that gold traders can expect the FED to increase its signals to harden its monetary policy. Analysts primarily draw attention to $ 1,830 as the levels to watch in the gold price. Generally, investors are reported to be in long positions. The full statements of analysts are as follows:
Given that positions are still inclined towards long-term risk, continued higher-than-expected price pressures could easily cause gold to drop below $1,830 an ounce. This could be seen in the not too distant future. If the gold/US dollar XAU/USD pair breaks below the $1,830 support levels, traders can pull the yellow metal to $1,790 fairly quickly.
What is the latest situation in gold prices?
Gold in global markets rose today and extended Wednesday’s sharp gains. The precious metal was supported by the pullback in the US dollar. U.S. Treasuries fell after U.S. consumer price data showed inflation could peak in April and the Fed eased some concerns about more aggressive rate hikes.
