- The dollar shoots up in the market after US inflation data.
- Expectations of a more aggressive Fed generate sharp drop in Treasury bonds.
- XAU/USD loses $40 from the day’s peak, approaches $1,600.
The Prayed lost more than $30 after the publication of the US September inflation data and went from a two-day high near $1,680 to plunge to $1,643, the lowest level in two weeks.
The price of the yellow metal remains under pressure, in the low zone. Next support can be seen at $1,635, one of the last defenses for a revisit to the year low at $1,614.
The slump was activated after it was known that the US Consumer Price Index in September rose 0.2%, above the 0.1% expected, taking the annual rate from 8.3% to 8.2%. The annual core reading rose to a new high in decades at 6.6%, higher than the 6.5% market consensus.
Following the figures, Treasury bonds plummeted pushing yields to new highs in years. The 2-year tranche exceeded 4.5% and the 10-year tranche 4%. Wall Street futures went from being in positive territory to showing falls of more than 2%. Silver lost almost 50 cents in minutes. It falls more than 2.60% and trades around $18.50.
Technical levels
Source: Fx Street
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