Market Flux Event
Gold Holds Near $4,130 Ahead of US CPI Report as Lower Oil Eases Inflation Fears
Read this in the Market Flux appGold steadied near $4,130 in early Asian trade on November 10, holding gains above the $4,100 level as a retreat in crude oil prices eased concerns about inflation and tighter monetary policy. Lower oil prices, partly reflecting hopes for a diplomatic resolution to the conflict in the Middle East, helped reduce the inflation premium that had been weighing on bullion, while a rebound in equity markets also boosted risk appetite according to ANZ Research.
Despite the supportive backdrop, gold's recovery remained constrained. Strong recent US jobs data reinforced market expectations for a Federal Reserve rate hike in December, limiting how far bullion could advance. The metal had experienced sharp two-way swings the prior week, with daily candles showing a long upper shadow on Thursday and a long tail on Friday, keeping price action in a near-term sideways range around the $4,100 barrier.
Investors were closely watching Tuesday's US Consumer Price Index report as the next major catalyst. Technically, gold was forming what analysts described as an ascending triangle on the four-hour chart, with rising lows pushing the price toward key resistance around $4,140, setting up a potential breakout depending on how the inflation data prints.
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Sources
- FirstSquawkLOWER CRUDE PRICES AND TREASURY YIELDS HAVE EASED CONCERNS ABOUT INFLATION AND TIGHTER MONETARY POLICY, THOUGH STRONG U.S. JOBS DATA REINFORCED EXPECTATIONS OF A FED RATE HIKE IN DECEMBER, LIMITING BULLION’S RECOVERY, WITH INVESTORS FOCUSED ON TUESDAY’S U.S. CPI REPORT
- WsjGold Edges Lower as Investors Await Key U.S. Inflation Data
- PiQMarkets🇦🇺 Australia Westpac Consumer Sentiment (Nov) $AUD Actual: -2.7% Previous: -4.7%
- WSJmarketsGold Edges Lower as Investors Await Key U.S. Inflation Data
- Fx StreetGold declines below $4,150 as rising Fed hike expectations outweigh US-Iran deal hopes
- Action ForexGold Regains Traction on Easing Inflation Concerns
- ForexcomGold coils for potential breakout as US CPI looms
- BusinessGold held gains as inflation concerns eased alongside oil prices on hopes for a diplomatic resolution to the war in the Middle East
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