XAUUSD - PPI news trading strategy, predicting a fall again
World gold price continued to fall sharply for the fourth consecutive session. The main reason is that the US announced the consumer price index (CPI) in July increased by 0.2% compared to the previous month, as expected and on par with June.
Core CPI, which excludes food and energy prices, was also unchanged from the previous month at 0.2%. Core CPI for the whole year increased by 4.7%, lower than the forecast increase of 4.8%.
Although, CPI is still high, but core CPI has eased the upward pressure. Experts say that this means that the US Federal Reserve (Fed) will be able to continue to stop raising interest rates at its next meeting and may also stop raising rates this year.
However, experts also recommend investors to be cautious and should keep part of their capital in gold. Because the market has just witnessed the consumer price index (CPI) of July and China's producer price (PPI) both decrease year on year. This is a signal of deflationary pressure as demand in the world's second largest economy weakens. Economic weakness, gold will have the opportunity to go up.
Core CPI, which excludes food and energy prices, was also unchanged from the previous month at 0.2%. Core CPI for the whole year increased by 4.7%, lower than the forecast increase of 4.8%.
Although, CPI is still high, but core CPI has eased the upward pressure. Experts say that this means that the US Federal Reserve (Fed) will be able to continue to stop raising interest rates at its next meeting and may also stop raising rates this year.
However, experts also recommend investors to be cautious and should keep part of their capital in gold. Because the market has just witnessed the consumer price index (CPI) of July and China's producer price (PPI) both decrease year on year. This is a signal of deflationary pressure as demand in the world's second largest economy weakens. Economic weakness, gold will have the opportunity to go up.
✅ TP1: 1915
✅ TP2: 1908
🛑 SL: 1930