#CPIWatch
Key Core Factors:
The main reasons behind the recent fluctuations and adjustments in gold prices are the renewed rise in macro inflation expectations and the level of interest rate hikes:
Pressure from Rate-Hike Expectations: Driven by recurring geopolitical tensions in the Middle East, which pushed oil prices above 100 USD (Brent oil exceeding 100–101 USD). Concerns about renewed inflation have intensified. The latest U.S. PPI data shows a slight increase, directly lifting the probability of the next Fed rate hike to around 60%. U.S. Treasury yields are approaching the 5% threshold, and the USD has rebounded strongly—both of which directly weigh on gold as a non-yielding asset.
Key Event: The biggest source of uncertainty in the market right now lies in the U.S. CPI inflation data for August, expected to be released today at 8:30 a.m. ET. If CPI comes in higher than expected, gold prices could fall below the 4,300 level; if CPI unexpectedly slows, it will fully trigger a recovery from the bottom! #CPIWatch #GOLD #XAUUSD
Key Core Factors:
The main reasons behind the recent fluctuations and adjustments in gold prices are the renewed rise in macro inflation expectations and the level of interest rate hikes:
Pressure from Rate-Hike Expectations: Driven by recurring geopolitical tensions in the Middle East, which pushed oil prices above 100 USD (Brent oil exceeding 100–101 USD). Concerns about renewed inflation have intensified. The latest U.S. PPI data shows a slight increase, directly lifting the probability of the next Fed rate hike to around 60%. U.S. Treasury yields are approaching the 5% threshold, and the USD has rebounded strongly—both of which directly weigh on gold as a non-yielding asset.
Key Event: The biggest source of uncertainty in the market right now lies in the U.S. CPI inflation data for August, expected to be released today at 8:30 a.m. ET. If CPI comes in higher than expected, gold prices could fall below the 4,300 level; if CPI unexpectedly slows, it will fully trigger a recovery from the bottom! #CPIWatch #GOLD #XAUUSD
