
Gold (XAU) News: CPI Decides if Gold Clears $4,435.25 or Reverses Lower
CPI decides whether gold buyers clear $4,435.25 and target the 200-day average or trigger a deeper XAUUSD correction.
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CPI decides whether gold buyers clear $4,435.25 and target the 200-day average or trigger a deeper XAUUSD correction.

Current Setup The latest US CPI report did not deliver a major surprise for financial markets, with both the headline and core inflation prints meeting expectations. The consensus forecasts for the July US CPI had been for headline CPI to come in at 3.4% YoY (prior 3.5%), while the core CPI was expected at 2.5% year-on-year (prior 2.6%).

The Euro managed to hit a few pips above the resistance of 1.1560 which could lead to another advance. As we see from the chart, prices face support around 1.1470-80 while as long as the market holds above it, the advance may could continue towards 1.1685 and above.

The USD/GBP cross rate has tumbled by 0.38% (a 0.38% gain for GBP against USD) at the time of writing, slightly above USD/CAD, which recorded a 0.56% loss over the same period (see Fig. 1).

Silver rebounds as Treasury yields drop and buyers step back into the rate-relief trade before CPI. Oil near $90 keeps the inflation argument alive and the Fed debate unresolved.

Wednesday to show signs of life again as we are awaiting CPI numbers and the influence that inflation may or may not have on the asset.

Silver has rallied early on Wednesday to jump across the 200 Day EMA again. However, with the CPI number due and the uncertainty in the Middle East, it remains a noisy market

China continues to buy Gold

GBP/USD remains firm ahead of the US CPI release after breaking above a key medium-term descending trendline following last Friday's US NFP. Sterling's near-term bullish momentum remains intact above the 1.3479 pivotal support, with upside targets at 1.3547, 1.3580 and 1.3643.

At the time of writing, the EUR/USD was struggling to find a clear direction. Hardly a surprise, truth be told, ahead of such an important data release.

GBP/JPY Price Forecast: Recovery stalls below the 50-day SMA

EUR/USD Price Forecast: Biding its time near 1.1550, awaiting US CPI numbers

We're less than an hour away now from that, so it is finally about time to see some action in markets after a more tentative setup in the past few days.

Pound-Dollar could hold above $1.35 if US inflation cools as expected, although renewed Middle East tensions risk reviving safe-haven demand for the Greenback. The Pound to US Dollar (GBP/USD) exchange rate traded with a softer bias on Tuesday as fresh uncertainty surrounding the Middle East supported demand for the US Dollar.

Pound-Australian Dollar could stay near AU$1.91 if UK GDP supports Sterling, although hawkish RBA signals may keep the ‘Aussie' well underpinned. The Pound to Australian Dollar (GBP/AUD) exchange rate traded in a narrow range on Tuesday, after early volatility triggered by the Reserve Bank of Australia's latest policy decision.