today very important economic data being the CPI , the US inflation indicator , a very strong indicator that will hardly impact gold .
here's my scenarios with the CPI and it's impact on gold :
1- a high CPI : this will give strenght to the dollar since a high inflation means an agressive rate hike from the FED.
it's impact on gold will be negative it will drag it down , that the kind of CPI we want to see since technically gold is bearish .
2- a low CPI : this will give weakness to the dollar since a good inflation doesn't need agressive hikes .
it's impact on gold will be positive and it will take it to the high and even possibly swaps from it's bearishness to bullishness.
* beware of the liquidity grap : usually after the CPI release gold make a counter movement to stop the retailers before continuing with it's general direction , which means for example the cpi is high instead of gold falling it may rise to stop early seller before falling down and continuing it's direction , and vice versa with low CPI.
I hope the explanations are clear and makes sens to you .
hard day for gold and USD pairs today do not go wild with your trades !!
here's my scenarios with the CPI and it's impact on gold :
1- a high CPI : this will give strenght to the dollar since a high inflation means an agressive rate hike from the FED.
it's impact on gold will be negative it will drag it down , that the kind of CPI we want to see since technically gold is bearish .
2- a low CPI : this will give weakness to the dollar since a good inflation doesn't need agressive hikes .
it's impact on gold will be positive and it will take it to the high and even possibly swaps from it's bearishness to bullishness.
* beware of the liquidity grap : usually after the CPI release gold make a counter movement to stop the retailers before continuing with it's general direction , which means for example the cpi is high instead of gold falling it may rise to stop early seller before falling down and continuing it's direction , and vice versa with low CPI.
I hope the explanations are clear and makes sens to you .
hard day for gold and USD pairs today do not go wild with your trades !!
Yorum:
like predicted CPI high , gold did a liquidity grap and now falling