Based on the US Division of Labor, the patron worth index (CPI) in February confirmed an annual improve of seven.9% (in opposition to 7.5% in January and economists’ forecast of development by 7.8%), which is essentially the most important annual improve since January 1982 of the yr. The Fed is prone to tighten financial coverage this yr not as aggressively as anticipated, given the affect of occasions in Ukraine on the worldwide financial system.
Firstly of right now’s European session, the XAU/USD pair is buying and selling close to the vital short-term assist degree of 1972.00, offering alternative to extend lengthy positions. As you already know, gold could be very delicate to modifications within the financial coverage of the world’s main central banks, particularly the Fed. When it tightens, the quotes of the nationwide foreign money (below regular situations), as a rule, develop, whereas the worth of gold falls.
Nevertheless, geopolitical uncertainty and accelerating inflation all over the world improve the demand for gold, which is a well-liked defensive asset, creating preconditions for additional development of its quotations.
