Upcoming CPI report could disrupt steady gold prices

Upcoming CPI report could disrupt steady gold prices

"Gold Disruption"

The gold market has been in a state of equilibrium with no significant price fluxes due to the absence of substantial influencers.

However, the forthcoming US Consumer Price Index (CPI) report, slated for release next Wednesday, has captured the attention of market watchdogs. Analysts are eyeing this release as it’s anticipated to shake up the currently steady gold prices.

The ‘higher-for-longer’ policy of the Federal Reserve, a key player in the financial world, is likely to send waves through the gold market. Should gold continue its march past the 2000 mark, the market might see a persistent downturn.

From a risk management perspective, the prospective buyers stand to gain a favorable risk-to-reward ratio around the estimated 2150 point amid the current market anticipatory state.

CPI report’s potential impact on gold prices

A look at an hourly analysis reveals a distinct gap between the 2280 and 2328 resistance points. This points towards the potential for ‘range play,’ prompting traders to buy at support points and sell at resistance ones. That said, experts caution against hasty mid-range trading without an apt trigger.

Several triggers, including the US Jobless Claims data and the consumer sentiment survey from the University of Michigan, might catch your attention. Yet, it remains uncertain whether these factors will substantially shape market expectations. Meanwhile, all eyes are on the upcoming US CPI release, the next anticipated big-ticket event.

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