Oct, 13 2022
VOT Research Desk
The Federal Reserve (Fed) is more likely to raise interest rates by 75 basis points (bps) in the first week of November, although this has had no effect on the price of yellow metal. According to the CME FedWatch tool, the probability of the Fed raising interest rates for a fourth time in a row is 84.8%.
The US dollar index (DXY) is now balancing between 113.06 and 113.60 and is expecting the publication of the US Consumer Price Index (CPI) data for additional direction.
According to the consensus forecast for the inflation report, the headline US CPI will come in at 8.1%, down from the previous print of 8.3%.
While the core CPI, which includes food and energy prices, will increase to 6.5% from the previous print of 6.3%. Thanks to lower gas costs, estimates for the headline inflation rate have been reduced.
On an hourly basis, gold is battling to stay above the 61.8% Fibonacci retracement (from September’s low of $1,618.68 to the October 5 high of $1,726.53) at $1,658.60. The price of gold is fluctuating between $1,661.85 and $1,684.05.
The 20- and 50-period Exponential Moving Averages (EMAs) are about to cross bullishly at about $1,674.00.
Meanwhile, the Relative Strength Index (RSI) (14) has moved from the bearish area of 20.00-40.00 to the 40.00-60.00 regions and is aiming to break through the 60.00 barrier.
