Today is Wednesday and investors are waiting for the CPI data. Furthermore, the actual figure of the inflation rate would be the decider path for the hike in interest rates.
Precisely, if there is a hike in inflation then FED will take all the necessary steps to tumble it down. However, if the hike in interest rates continues at such a pace then the US economy is heading towards a recession path.
Predictors are predicting a rise in CPI data which will ultimately lead FED to increase interest rates by 0.75 BPS. Consequently, the market may experience a downside panic thereby testing its lower levels.
In our recent blog, we have provided our readers the technical details about the Comex Gold. Moreover, we clearly stated in our blog that a decisive weekly close below $1800 will take XAU/USD to $1770—$1745 and then to $1710 in days to come.
Click on the link and check our levels:
XAU/USD is heading towards $1710; Be cautious in Gold at higher levels
Therefore, we also recommended our subscribers to go short in Gold around $1800–$1815 with a stop loss above $1840 for the downside target of $1710 in the next few trading sessions.
Comex Gold is currently trading around $1726.37 and made a low of $1722.48 on Wednesday in the early trading session. We may experience another downside panic if the US CPI comes the negative data.
Technical analysis
Comex Gold has support at $1685. If Gold closes below $1685 then the next support and target could be at $1570. Both the Gold and stock market is facing pressure due to the hike in interest rates by FED.
The FED meeting is on 27th July and a market may experience a big fall after the meet.
An increase in inflation is leading investors to withdraw their interests from bullion due to a hike in interest rates.