Gold on Fire, Weaker CPI Figures Boost Safe Haven Asset’s Demand - Forex News by FX Leaders
Gold on Fire, Weaker CPI Figures Boost Safe Haven Asset's Demand

Gold on Fire, Weaker CPI Figures Boost Safe Haven Asset’s Demand

Posted Friday, November 11, 2022 by
Skerdian Meta • 1 min read

The gold price has recovered following a minor dip in the Tokyo session that took the asset below $1,750.00. On Friday, the risk profile kept going up, and the precious metal XAU/USD is trying to change its auction profile to go above $1,750.

S&P 500 futures are retaining their Friday gains, while a slight comeback in the US dollar index (DXY) is tiring. Rising demand for government bonds has significantly reduced their returns. Ten-year US Treasury yields have fallen to 3.81%.

It should be noted that US markets will be closed on Friday in observance of Veterans Day. According to the October inflation report, the Federal Reserve (Fed) will reconsider its policy tightening plans and may reduce its current rate hike pace. But Loretta Mester, president of the Cleveland Fed Bank, thinks that the US central bank should keep its tight policies because inflation is still going strong.

XAU/USD

Long-term inflation expectations will be released on Friday, putting the US economy through another inflation test. The Federal Reserve has often said that long-term inflationary pressures are well-anchored at roughly 2%. An increase in economic data could sour the market atmosphere in the coming days.

Gold Technical Outlook

The gold price resumed its sharp uptrend after breaking through a major resistance level of $1,730. This level is currently acting as support; gold’s next support can be found at around $1,701.

On the plus side, a bullish breakout of the $1,753 level could extend the uptrend to the $1,777 level.

CPI figures that are lower than expected keep safe haven asset gold in demand today.

Today’s projected trend: Bullish

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
Comments
0 0 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments