XAU/USD has resumed its upward trend following a minor retracement to roughly $1,930 in the London session. As the U.S. dollar index is under significant pressure ahead of the release of Consumer Price Index (CPI) data at 12:30 GMT today, the precious metal has managed to found support. Following favorable signs received on Monday, S&P500 …
XAU/USD has resumed its upward trend following a minor retracement to roughly $1,930 in the London session. As the U.S. dollar index is under significant pressure ahead of the release of Consumer Price Index (CPI) data at 12:30 GMT today, the precious metal has managed to found support. Following favorable signs received on Monday, S&P500 futures have added some gains in Europe. Market sentiment is exceptionally optimistic, as investors have shrugged the uncertainties around key bank earnings this week.
The US Dollar Index (DXY) has established intermediate support at 101.68. More downside in the USD Index appears to be favored as tight labor market conditions release heat and inflationary pressures are projected to ease further as petrol prices fall. According to the preliminary analysis, annualized headline CPI is likely to fall to 3.1% from 4.0% in May, while core inflation is expected to fall to 5.0% from 5.3% in May. Meanwhile, San Francisco Fed President reaffirmed on Monday that in order to bring down too-high inflation data in the face of a healthy labor market, two more rate hikes are likely to be required to this year.
Risk disclaimer:
Please note that this article does not offer any instructions or suggestions regarding investment decisions. It is important for you to conduct your own research or seek professional advice from a qualified professional before conducting an investment decision.
