According to many experts, today is a very important day for gold prices. Today, all eyes will be on inflation figures in the US. Well, how can ounce gold traded at 1,816 dollars at the time of writing and gram gold change hands at 806 liras be affected by this situation? Cryptocoin. com we are conveying the details…
How will gold prices be affected by US data?
Inflation decisions to be announced in the USA are eagerly awaited. It is obvious that the announcement of inflation figures and the interest rate decision of the US Federal Reserve affects the markets. Last week, gold prices rose after inflation expectations and Fed Chairman Powell’s inflation comments. Today, at 16:30 Turkish time, the US December consumer inflation will be announced. That figure was 6.8 percent annually in November, while economists’ estimates this month are around 7.1 percent, according to Bloomberg.
Many experts gave their comments on how the data will affect the market. One of them was the economist Selçuk Geçer. In a post he shared on Twitter, Geçer said, “Tomorrow is critical… US inflation is coming… I hope it doesn’t go above 7 percent…”
Terra Investment Chief Economist Enver Erkan points out that if inflation continues to rise, gold is falling with expectations that the Fed will tighten monetary policy more quickly, while Fed minutes show that it is ready to increase rates sooner than expected. According to experts, the fact that inflation does not improve causes purchases in pullbacks.
Experts think that if the rise in inflation and the improvement in employment data occur, the realization of an interest rate hike may reduce the price of ounce gold. According to some, rally thoughts could be shelved if gold falls below $1,840 an ounce as a result of inflation data. If the $1,920 level is breached, a broader upward move can be expected. In other words, the data to be announced later in the day will show how inflation will affect the market.