Gold Prices Edge Lower Ahead of US Inflation Data
Gold Prices Edge Lower Ahead of US Inflation Data
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Gold prices softened on Wednesday, January 15, as investors adopted a cautious approach ahead of the release of the US consumer price inflation (CPI) report. This data could offer insights into the Federal Reserve's future interest rate strategies.
Gold prices softened on Wednesday, January 15, as investors adopted a cautious approach ahead of the release of the US consumer price inflation (CPI) report. This data could offer insights into the Federal Reserve's future interest rate strategies.
- Spot gold fell 0.1%, trading at $2,672.76 per ounce as of 0300 GMT.
- US gold futures recorded a modest gain of 0.3%, reaching $2,689.70 per ounce.
Gold Prices in India
24-carat gold: ₹7,w831 per gram
22-carat gold: ₹71,784 per 10 grams
Over the past week, 24-carat gold in India experienced a 0.6% increase.
Factors Influencing Gold Prices
US Inflation Data: Kelvin Wong, Senior Market Analyst at OANDA for Asia Pacific, highlighted that a higher CPI reading could exert downward pressure on gold prices.
A strong CPI result may bolster expectations of continued Federal Reserve monetary tightening into 2025.
The CPI report is due at 1330 GMT, following a robust US jobs report that reduced predictions of imminent Fed rate cuts.
Predicted Inflation Rates: A Reuters poll suggests an annual CPI increase of 2.9% in December, slightly above November's 2.7%, with a month-over-month rise of 0.3%.
Investment Strategy
Rahul Kalantri, VP Commodities at Mehta Equities, advised investors to closely monitor the CPI data and geopolitical events for gold price movements. Key levels to watch include:
Global Gold:
Support: $2,652-$2,640 per ounce
Resistance: $2,685-$2,698 per ounce
Indian Gold:
Support: ₹77,750-₹77,980 per 10 grams
Resistance: ₹78,370-₹78,550 per 10 grams
Jateen Trivedi, VP of Research at LKP Securities, identified critical levels for Indian gold:
Strong support base at ₹77,000 per 10 grams
Significant resistance at ₹79,000 per 10 grams
Kelvin Wong noted that a drop in global gold prices below $2,600 per ounce would make $2,540 per ounce an appealing entry point for long-term investors.
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