Gold Price Forecast: XAUUSD to struggle on strong US CPI data
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Gold price ended up closing a volatile week in positive territory. Thursday’s Consumer Price Index (CPI) data could help Gold price to determine its next short-term direction, FXStreet’s Eren Sengezer reports.
“On Tuesday, the United States midterm elections will be held but it’s difficult to say what kind of an impact the outcome could have on the US Dollar performance against its rivals or the overall market mood.”
“The annual Core CPI is forecast to rise to 6.9% in October from 6.6% in September. A strong inflation print would remind investors of the Federal Reserve’s willingness to stay on an aggressive tightening path and cause Gold to come under renewed bearish pressure. On the other hand, a softer-than-projected Core CPI reading is likely to allow markets to scale back 75 bps December rate hike bets, providing a boost to XAUUSD in the near term.”
“On Friday, the US economic docket will feature the University of Michigan’s Consumer Sentiment Survey for November. Rather than the headline Consumer Confidence Index, markets will pay attention to the 5-year Consumer Inflation Expectations. A straightforward market reaction could be witnessed to this data with a reading at or above 3% weighing on XAUUSD and vice versa.”
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