XAU/USD Market Overview: Movement Factors


 Gold Demand Rises After CPI

Gold traded high after the release of CPI data yesterday and today, following the weakness of the US Dollar and falling bond yields.

The release of CPI data has had a sentimental impact on the market that signs of the end of interest rate hikes by the Fed are nearing.

Yesterday's data showed no improvement in the reading of the inflation rate for last October.

The reaction of investors is now expecting the interest rate cut in America to be implemented in the middle of May next year as well as having a falling impact on the Dollar index and the "bond yield" market. At the same time increasing demand for the gold market.

Future Market Expectations

Investors will be looking forward to the results of the release of the "Retail Sales" and "Producer Price Index (PPI)" data as confirmation of the direction of the country's inflation reading.

This is because the two data are the real measuring stick of the inflation value for the production of data in the next month.

If the two data do not show any decrease in the inflation rate, it can put pressure on the gold market while increasing the amount of demand for the US Dollar and the bond yield market.

Wednesday, Nov. 15

Producer Price Index (PPI) (October)

New York Fed Empire State Manufacturing Index (November) Business Inventories (September)

Retail Sales (October)

Technical Analysis

The close on the daily chart will be the main focus today. The $1,970 zone is expected to be the main resistance.

If the price of gold trades close below that price level, it is likely that the $1,950 level will be tested again.

The release of "Retails Sales" and PPI data tonight is expected to be the main stimulus to the movement of the gold market today.