A Strong US CPI Dents Gold’s Rally - Forex News by FX Leaders

A Strong US CPI Dents Gold’s Rally

Posted Friday, July 12, 2019 by
Arslan Butt • 1 min read

During Thursday’s US session, gold’s sudden rally ended and its prices slipped, giving back the gains of the previous day. The US CPI for June came in better than expected, overshadowing the Fed rate cut sentiments and reducing gold’s safe haven appeal.

However, GOLD continues to hold above the $1,400 level, and is now trading at $1,400 at the time of writing. Earlier on Thursday, the precious metal had soared up to $1,426, a one-week high.

However, despite the strong CPI print, the weakness in the US dollar continues even on Friday. Weak factory activity and inflation as well as the trade war continue to weigh on the US economy, according to Fed Chair Powell, and these reasons are the main drivers for Fed’s decision to step in with rate cuts soon.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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