Higher-than-Expected CPI: Typically led to a decrease in gold prices, likely due to expectations of tighter monetary policy strengthening the U.S. dollar.
Lower-than-Expected CPI: Generally resulted in an increase in gold prices, as markets anticipated looser monetary policy, weakening the dollar.
The U.S. Consumer Price Index (CPI) data released today showed a 0.3% month-over-month increase and a 3.3% year-over-year rise, aligning with market expectations. he CPI data supports the anticipated 25-basis-point rate cut by the Federal Reserve in its upcoming meeting. Lower interest rates typically weaken the U.S. dollar, making gold more attractive as an alternative asset.
Lower-than-Expected CPI: Generally resulted in an increase in gold prices, as markets anticipated looser monetary policy, weakening the dollar.
The U.S. Consumer Price Index (CPI) data released today showed a 0.3% month-over-month increase and a 3.3% year-over-year rise, aligning with market expectations. he CPI data supports the anticipated 25-basis-point rate cut by the Federal Reserve in its upcoming meeting. Lower interest rates typically weaken the U.S. dollar, making gold more attractive as an alternative asset.
Here is the chart showing the impact of the last 10 unemployment claims data releases on gold prices:
Blue bars represent changes in unemployment claims (in thousands).
Yellow line shows the percentage change in gold prices.
If unemployment claims increase beyond expectations, it signals potential economic weakness, which often weakens the U.S. dollar. A weaker dollar makes gold more attractive as a safe-haven asset, driving its price higher.Current trends and historical patterns suggest the market may anticipate or react positively to such news, hence a potential increase in gold prices.. 📚
#tradewithknowledge 💯
Blue bars represent changes in unemployment claims (in thousands).
Yellow line shows the percentage change in gold prices.
If unemployment claims increase beyond expectations, it signals potential economic weakness, which often weakens the U.S. dollar. A weaker dollar makes gold more attractive as a safe-haven asset, driving its price higher.Current trends and historical patterns suggest the market may anticipate or react positively to such news, hence a potential increase in gold prices.. 📚
#tradewithknowledge 💯
Market currently very calm and moving sideways after breaking the Trendline.We need to wait till market cross the OB📚
#tradewithknowledge
#tradewithknowledge