CPI IS COMING, MY TRADE IS LONG GOLD ๐ก๐
Tonight everyone is watching one number: U.S. CPI.
With nonfarm payrolls beating expectations, a hotter CPI could strengthen the case for the Fed to stay hawkish or even bring the rate-hike debate back into focus.
Normally, that sounds like bad news for gold.
But my positioning is still LONG GOLD.
Why?
Because Iโm not trading one CPI print. Iโm watching the bigger macro battle between persistent inflation, interest rates, the dollar, and demand for hard assets.
A cooler CPI could immediately support gold through lower rate expectations.
A hotter CPI may pressure gold first - but if gold absorbs that pressure and buyers defend the pullback, that reaction could be even more interesting than the CPI number itself.
Tonight everyone is watching one number: U.S. CPI.
With nonfarm payrolls beating expectations, a hotter CPI could strengthen the case for the Fed to stay hawkish or even bring the rate-hike debate back into focus.
Normally, that sounds like bad news for gold.
But my positioning is still LONG GOLD.
Why?
Because Iโm not trading one CPI print. Iโm watching the bigger macro battle between persistent inflation, interest rates, the dollar, and demand for hard assets.
A cooler CPI could immediately support gold through lower rate expectations.
A hotter CPI may pressure gold first - but if gold absorbs that pressure and buyers defend the pullback, that reaction could be even more interesting than the CPI number itself.
