Gold Eyes on US Inflation Data

Gold investors turned their eyes to US inflation data. Gold, on the other hand, which is waiting for the US inflation data, is keeping a stagnant course.

Gold, which is waiting for the US inflation data, which can give clues about the rate of increase in the interest rate of the US Federal Reserve, is expected to close the week with a limited decline. While spot gold is trading at 1840-1845 dollars, May inflation will show that price increases will not decrease for a few more months, and despite the signs of cooling in the economy, pressure on the Fed to raise interest rates by 50 basis points in the upcoming meetings is increasing. With the European Central Bank (ECB) being the last central bank to increase interest rates, the tightening monetary policies were reflected as an increase in the pressure level of gold. Oanda Corp. Senior Market Analyst Edward Moya said: “While the initial shock of an upcoming report on high inflation will be painful for gold investors, global growth concerns will eventually lead to a shift to gold in search of safe assets. If gold turns bearish, it should find support in the $1785-1800 band. In case of a surprise easing in inflation, it may rise to the level of 1890 dollars.