In a previously sent note, there was an error in the second paragraph. On a daily basis, gold was reported higher and lower this Wednesday. Here is the revised note:
The U.S. Consumer Price Index (CPI) was released in April and the most liquid gold deal rose on Wednesday during a session on the Federal Reserve (Fed) position on inflation. Dominant investor focus. As a result, the metal runs with instability, retreats after release and begins to rise later in the day.
At Comex, the metal section of the New York Mercantile Exchange (Nymex) was scheduled for delivery in June, up 0.95% at the end of the session at $ 1,841.00 a troy ounce.
US CPI rose 0.3% in March-April, beating analysts’ expectations of a 0.2% rise. However, it was lower than the previous month’s 1.2% advance. Excluding volatile food and energy prices, it rose 0.6% above the consensus of 0.4%.
According to the capitalist economy, the decline in the index marks the beginning of a steady decline in inflation in the country. As per the advice, this decision strengthens the expectation that the central bank will raise interest rates by 50 basis points in the next two meetings in June and July.
According to Onda’s analyst Edward Moya, gold’s retreat as the dollar rose after a warmer inflation report than expected because it may force the central bank to provide more tightness than initially thought. In turn, during the session, the dollar lost strength, which lifted commodities. “However, the general result for most of Wall Street is that the central bank is still prepared to offer half-point increases at its June and July meetings.”
For Moya, gold is temporarily at $ 1830 and is likely to remain stable, but it could be tested if a steady wave of central bank officials’ talk raises market expectations for a more aggressive tightening later this year.
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