MARKET OUTCOME | IMAN PROFIT

Topic: Consumer Price Index (CPI) of the United States

Result:

Actual (CPI annual): 4.2%
Forecast: 4.2%
Previous: 3.8%

Core CPI m/m (actual): 0.2% (red arrow) | Forecast: 0.3%

• Core CPI y/y (actual): 2.9% (green arrow) | Forecast: 2.9%

Correct Analysis!

Market Reaction:

Based on the published report, the annual total inflation rate (CPI y/y) came in exactly as expected at 4.2%, showing an upward trend compared to last month (3.8%). However, a positive outcome for gold buyers in this report is the decrease in the core monthly inflation index (Core CPI m/m) to 0.2% (lower than the forecast of 0.3%). This slight drop in the core monthly inflation index has reduced the severity of the Federal Reserve's hawkish expectations and is signaling a potential weakening or adjustment of the Dollar Index (DXY). On the other hand, this data serves as fuel for the upward growth of the gold market (XAUUSD) and increases its growth potential. Considering that we have the Canadian interest rate statement shortly, market volatility will intensify; please manage your risk!

Respect, Iman Ghasemi

@imanprofit
Fundamental Analysis of Gold and Dollar