On January 15, 2025, gold prices (XAUUSD) are expected to decline following the release of higher-than-expected US Consumer Price Index (CPI) data. The report signals persistent inflation, increasing the likelihood of tighter monetary policy by the Federal Reserve, which could weigh on gold prices.
Today’s given signal : https://t.me/calendarsignal/16616
Why Higher CPI Data Impacts Gold Prices
- Expectation of Higher Interest Rates:
- Higher CPI data, indicating rising inflation, often prompts the Federal Reserve to maintain or increase interest rates.
- Higher rates strengthen the US dollar and Treasury yields, making gold less attractive as a non-yielding asset.
- Strengthening US Dollar:
- Elevated inflation raises expectations of a hawkish Fed stance, boosting the US Dollar Index (DXY).
- A stronger dollar makes gold more expensive for foreign investors, reducing its demand.
- Market Shift to Yielding Assets:
- With higher inflation expectations, investors may shift from gold to interest-bearing assets like bonds for better returns.
Conclusion
Higher-than-expected US CPI data suggests prolonged Fed tightening, strengthening the US dollar and Treasury yields. This is expected to drive gold prices lower, with spot gold likely falling, reflecting reduced demand for safe-haven assets amid inflationary pressures.
Previous released data results :
On last CPI Data (11-12-2024) we predicted higher data, as per that we suggest to SELL XAUUSD & as a result, we made a profit of 36 points according to the signal we gave.
Check last given signal : https://t.me/calendarsignal/16325
Performance : https://t.me/calendarsignal/16342
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