Last night, CPI data was released showing a sharp decline to 2.7% from 3% in the previous period. However, investors are questioning whether this data is truly reliable.
Although after the announcement gold prices were strongly supported and surged to approach the previous peak around the 438x area, they immediately faced heavy selling pressure, pushing gold back to the 432x zone, and this morning prices retested the 431x area.
This move indicates that despite expectations of easing inflation, the sudden drop has caused investors to doubt whether the data accurately reflects the actual economic conditions.
Therefore, in the short-term trend, gold prices are likely to move sideways with a wide range of 50–100 points per day until the market stabilizes again.
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