How to trade Gold and Dollar on US CPI?
Arslan Butt • 1 min read
What’s up, fellas.
Looks like a busy day, but the market is trading sideways in the wake of mixed economic events. After the disappointing CPI figures from the UK, investor focus has shifted towards the United States.
Recalling the US employment report, investors are expecting a solid growth in the inflation figures.
CPI – The consumer price index is expected to rise by 0.3% vs. 0.1% previously.
Core CPI – The core figure is also likely to upbeat the previous month’s 0.1%. Economists are expecting a rise of 0.2% in November.
GOLD – XAU/USD – The positive inflation is likely to drive bears in the bullion market and we may see gold dropping around 50/60 pips to target $1,197 and $1,191. In case of negative data, gold can target $1,204 and $1,207.
Dollar Index – The dollar index is trading at $97.02 and a positive figure is likely to lead it towards $97.35. On the other hand, a disappointing CPI can cause a drop until $96.75.