Gold prices saw a decline on February 12, 2025, following the release of the latest US Core Consumer Price Index (Core CPI) data and hawkish comments from Federal Reserve Chairman Jerome Powell.
Core CPI Data Shows Inflation Sticking Around
The US Core CPI for January came in at 0.3%, slightly higher than the previous month’s 0.2%. This signals that inflation is still sticking around longer than expected. Though the number met forecasts, it’s clear that inflation pressures aren’t easing as quickly as hoped. This increases the likelihood that the Federal Reserve will keep interest rates high for longer, which is generally negative for gold. When interest rates rise, gold becomes less attractive because it doesn’t generate interest like bonds or savings accounts do.
Jerome Powell’s Hawkish Tone Adds Pressure
On top of the inflation data, Jerome Powell’s comments have also weighed on gold. He stated that the Fed isn’t planning to lower interest rates anytime soon, given the persistent inflation. With rates likely to stay high for a while, gold could continue to struggle, as investors typically look for assets that yield higher returns in such an environment.
Resistance and Support Levels for Gold
Gold is facing a tough resistance zone between ₹85,900 and ₹86,600. For gold to rise, it needs to close above ₹86,600. If it doesn’t manage to break through this resistance, there’s a good chance we could see more declines. If prices do fall, key support levels to watch are ₹84,800, ₹84,400, and even ₹84,000. If gold falls below these levels, we might see a further drop today.
What’s Next for Gold Traders?
Given the Core CPI data showing that inflation is still high and Powell’s hawkish comments, gold seems likely to stay under pressure in the near term. Traders should keep an eye on the ₹85,900 to ₹86,600 resistance zone. If gold fails to break above these levels, it could move lower, potentially testing the support levels at ₹84,400 and ₹84,000.
Final Thoughts
Today’s dip in gold prices comes mainly from the ongoing inflation concerns and the Fed’s stance on interest rates. Unless gold closes above ₹86,600, it could face further downward pressure, with possible targets at ₹84,400 and ₹84,000. Traders should stay vigilant and keep watching these key levels, as well as any updates from the Fed or upcoming economic data.
Until then, Happy Trading!
Commodity Samachar Securities
We Decode the Language of the Markets
Also Read: Trade War Heats Up: U.S.-China Standoff Shakes Markets , Silver at a Crossroads: Will Trump’s Tariffs Spark a Surge?
Recommended Read: India’s Semiconductor Surge: Powering the Future of Electronics!
Want Help On Your Trades ?
