© Reuters.
Investing.com – There has just been a sudden shift in market trends with the highly anticipated release of US consumer price data, which investors are eagerly awaiting.
During these moments, gold moved into the green zone to erase all of its losses in early trading, as the rudder turned towards decline.
This comes at a time when markets are getting more clues about the pace of US monetary tightening and the Fed’s next move on interest rates.
Fed minutes revealed that Fed officials were surprised by the pace of inflation and indicated in their last meeting that they expect high interest rates until prices fall.
gold now
The US dollar rose during these trading times today, Thursday, by more than two dollars, reaching levels of 1676 dollars per ounce, an increase of 0.15%.
While futures on the yellow metal jumped in these trading moments today, Thursday, by more than $ 5, reaching levels of $ 1,684.30 an ounce, an increase of 0.35%.
dollar now
In parallel, in these moments, the main US dollar index gave up its morning gains, dropping to levels below 113 points, down 0.3%, falling to levels of 112.88 points.
Coinciding with the shift in the dollar index, bonds moved into the red zone, the 10-year yield fell at these times to levels of 3.888, down 0.35%.
prospectus data
The US consumer price index is expected to rise 8.1% in September compared to the same period last year, slowing from the 8.3% recorded in August.
Weekly data on unemployment benefits in the United States are also released, with the expected 225,000 new applications, after the unemployment rate dropped to 3.5% in September.
gold trend
“It appears to be consolidating, as there is a lull in the market ahead of major event risks, with the release of the Fed minutes and CPI report,” said Ilya Spivak, a currency analyst at DailyFX.
He added: “The more aggressive the Federal Reserve, the less attractive gold is, and the market expects the minutes to confirm only the US bank’s appetite to raise interest rates to trap inflation.”
Cleveland Federal Reserve Chairman Loretta Mester said that even with a significant amount of interest rate hikes this year, the central bank is still not in control of rising inflation and will have to proceed with monetary tightening. .
The International Monetary Fund has warned that mounting pressures from inflation, war-induced food and energy crises, and sharp rises in interest rates are pushing the world to the brink of recession.
Standard Chartered said in a statement that with the start of the wedding season in India, demand will continue to grow, but it is not expected to be as strong as in the final quarter of 2021.
