- The US CPI rose 0.1% in March, below the 0.3% market consensus.
- The Dollar falls sharply after the inflation data.
- XAU/USD climbs over $20 in a few seconds and hits new daily highs.
The price of gold (XAU/USD) It has shot up after the publication of inflation data from the United States, which have shown figures below expectations. The XAU/USD has risen from $2,007 to $2,028reaching the highest level in six days.
The US Department of Labor reported on Wednesday that the Consumer Price Index (CPI) rose 0.1% month-on-month in Marchbelow the 0.3% market consensus. The annual rate slowed from 6% to 5%, below the 5.2% expected. The core rate rose 0.4% in March, in line with expectations.
The dollar has fallen after knowing the inflation figures, and the DXY index has hit weekly lows near 101.50. At the same time, US yields have plunged. The 10-year bond yield has fallen from 3.44% to 3.37%. Wall Street futures have rallied.
The combination of risk appetite and lower returns is driving the price of gold. The XAU/USD targets recent high around $2,030 as it moves with strong bullish momentum.
gold technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
