Gold is below the EMA200 and EMA50 in the 30-minute timeframe. In case of breaking the resistance range or correction with low momentum, we can witness the continuation of the rise and see the limited supply and sell in that range with the appropriate risk reward.
Inflation Outlook and Economic Policies in the US and Their Impact on Markets
Consumer Price Increase in the US and Gradual Decline in Inflationary Pressures
• October Data:
In October, the US Consumer Price Index (CPI) rose by 0.2% compared to September. Core inflation (excluding energy and food) also increased by 0.3%, aligning with market expectations.
• Expert Analysis:
Dr. Christoph Balz and Bernd Weidensteiner from Commerzbank emphasized that while the data shows no significant progress, it indicates a gradual reduction in inflationary pressures.
• Core inflation remains far from the Federal Reserve’s 2% target, holding steady at 0.3%, similar to August and September.
• This suggests that inflation is likely to stay above the central bank’s target in the long term.
• Trump’s Policies and Inflation:
Economists predict that emerging economic policies under Trump, including higher tariffs and reduced immigration, may further strain the labor market and contribute to higher inflation in the long run.
Jerome Powell’s Remarks and Market Reactions
• No Need for Financial Policy Easing:
Federal Reserve Chair Jerome Powell stated that given strong economic growth, a robust labor market, and inflation still above the 2% target, there is no immediate need for monetary policy easing.
• Market Reaction:
These comments raised concerns among investors, signaling a potential slowdown in the pace of interest rate cuts.
US Dollar Outlook
• Stability and Growth of the Dollar:
According to Barclays Investment Bank, the US dollar will maintain its upward trajectory due to economic resilience and shifting market expectations regarding Federal Reserve interest rate policies.
• Factors Supporting Dollar Strength:
• Trump’s trade and fiscal policies, including higher tariffs and domestic initiatives, are key drivers of dollar strength.
• Barclays projects the dollar will remain strong and continue its upward trend through 2025.
• China’s efforts to boost its economy may have a limited impact on weakening the dollar but are unlikely to significantly disrupt its rising trajectory.
Inflation Outlook and Economic Policies in the US and Their Impact on Markets
Consumer Price Increase in the US and Gradual Decline in Inflationary Pressures
• October Data:
In October, the US Consumer Price Index (CPI) rose by 0.2% compared to September. Core inflation (excluding energy and food) also increased by 0.3%, aligning with market expectations.
• Expert Analysis:
Dr. Christoph Balz and Bernd Weidensteiner from Commerzbank emphasized that while the data shows no significant progress, it indicates a gradual reduction in inflationary pressures.
• Core inflation remains far from the Federal Reserve’s 2% target, holding steady at 0.3%, similar to August and September.
• This suggests that inflation is likely to stay above the central bank’s target in the long term.
• Trump’s Policies and Inflation:
Economists predict that emerging economic policies under Trump, including higher tariffs and reduced immigration, may further strain the labor market and contribute to higher inflation in the long run.
Jerome Powell’s Remarks and Market Reactions
• No Need for Financial Policy Easing:
Federal Reserve Chair Jerome Powell stated that given strong economic growth, a robust labor market, and inflation still above the 2% target, there is no immediate need for monetary policy easing.
• Market Reaction:
These comments raised concerns among investors, signaling a potential slowdown in the pace of interest rate cuts.
US Dollar Outlook
• Stability and Growth of the Dollar:
According to Barclays Investment Bank, the US dollar will maintain its upward trajectory due to economic resilience and shifting market expectations regarding Federal Reserve interest rate policies.
• Factors Supporting Dollar Strength:
• Trump’s trade and fiscal policies, including higher tariffs and domestic initiatives, are key drivers of dollar strength.
• Barclays projects the dollar will remain strong and continue its upward trend through 2025.
• China’s efforts to boost its economy may have a limited impact on weakening the dollar but are unlikely to significantly disrupt its rising trajectory.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.