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Inflation data lifts gold – $1,800 next?

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Inflation data lifts gold –  $1,800 next?


Gold Yesterday’s rally was more than 2%, making it a 2-month record. This came after US inflation data revealed a slight slowdown in October. There are now hopes that the Fed will slow down its rate of interest rate increases. Yesterday, gold spot prices rose 2.8% to $1.757 per troy an 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.

Fed fund futures currently estimate that there is a 72% probability that the Fed will not raise rates by 50 basis point at their December monetary policies 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 Resistance and further upside movement would be directed at the 1800.00 round…



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