All articles tagged with #us cpi data
Gold prices plunged to a two-month low after higher-than-expected US CPI data led to a hawkish repricing of Fed interest rate expectations, boosting US Treasury yields and the dollar. The Nasdaq 100 suffered a 1.5% setback as rising US rates posed challenges for stocks, with key support at 17,555 and resistance at 18,125. EUR/USD dropped to a three-month low, closing below support at 1.0720, with potential targets at 1.0650 and 1.0520.
Gold prices dipped as traders awaited U.S. inflation data and Federal Reserve comments for insight into interest rate plans, with spot gold down 0.2% to $2,020.97 per ounce. Analysts anticipate limited buying interest in gold due to a recent stock market rally and expect pressure on prices if inflation does not cool. U.S. CPI data is due on Tuesday, followed by retail sales and producer price index data later in the week, while at least seven Fed officials are set to speak. Fed policymakers have indicated a wait-and-see approach to rate cuts until they are more confident in inflation falling to 2%.
The recent US economic data, with inflation above 2.0% and a resilient job market, suggests a potential shift in Fed rhetoric towards a more hawkish direction, impacting gold prices and the Nasdaq 100. The risk-reward profile for both assets appears unattractive at the moment, with the potential for a larger downward correction. Traders should closely monitor Fedspeak and exercise caution, as Fed policymakers may push back against a rate cut in March, potentially leading to bearish outcomes for precious metals and tech stocks.