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Inflation data lifts gold – $1,800 next?

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Inflation data lifts gold –  $1,800 next?


Gold After US inflation data in October showed a slight slowdown, yesterday’s rise was over 2% and pushed it to a 2-month high. The Fed may slow down the pace of interest rate rises, this raised hopes. Yesterday’s gold spot price surged by 2.8% to $1.757 per troy-ounce.

US CPI data at 0.4% in October drove the USDIndex down by 2% to a 2-month low. Gold became cheaper for market participants that do not have USD.

Futures for Fed funds now indicate that there is a 72% chance the Fed will raise rates only by 50 basis points at its December monetary policy meeting.

The US Dollar’s decline to an 8-week low on Thursday pushed the metals complex sharply higher. Due to falling global bond yields, gold prices rose as well. After China reported 8,404 Covid infection cases on Wednesday, which was the highest in six months, it also boosted safe-haven demand.

Technical Review

The Gold price’s rebound from a triple bottom pattern has taken it to the 200-day exponential moving average, after breaking away from 1729.44 1735.00 resistance. It is expected that the extended rally will test the nearby 1765.39 Further upside movement and resistance would target the 1800.00 round…



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