Reserve

Gold

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<p class="has-drop-cap">The price of gold rose to a two-week high on Friday of nearly $1,890 per ounce, boosted by the expectations that the Federal Reserve will not raise rates at the forthcoming policy meeting on November 1. The uptick comes a day after a new <a href="https://tokenist.com/september-cpi-surpasses-expectations-with-a-3-7-increase-how-will-the-fed-react/" rel="dofollow" class="deco-link">consumer price index (CPI) report</a> showed that core inflation cooled down in September.&nbsp;</p> 
<h3 id="gold-nears-1-900-per-ounce-on-hopes-that-fed-will-skip-a-rate-hike-again">Gold Nears $1,900 per Ounce on Hopes that Fed Will Skip a Rate Hike Again&nbsp;</h3> 
<p>Gold prices have sharply recovered this week, particularly after a Thursday upswing caused by the new CPI report, which showed that September headline inflation exceeded expectations while the core inflation cooled.</p> 
<p>Investors jumped on the bullion after the new inflation data raised hopes that the Federal Reserve will skip a rate hike at its upcoming monetary policy meeting in November. This and the escalating tensions in the Middle East pushed traders toward safe-haven assets, including the yellow metal.</p> 
<p>As such, gold prices soared from nearly $1,800 per ounce to almost $1,890 on Friday. The price action is now testing the critical intraweek resistance near $1,890, characterized by the former support that gave way in late September.&nbsp;</p> 
<p>A break of this level would pave the way for a quick push to $1,920, where the confluence of the 100-day moving average (DMA) and 200 DMA lies. On the downside, the 100 weekly moving average (WMA) provides support near $1,860.</p> 
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<h3 id="sticky-inflation-and-hot-labor-market-still-unlikely-to-bring-another-rate-hike-in-november">Sticky Inflation and Hot Labor Market Still Unlikely to Bring Another Rate Hike in November</h3> 
<p>Gold’s latest rally was accelerated after the <a aria-label="September CPI report (opens in a new tab)" href="https://www.bls.gov/news.release/cpi.toc.htm" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">September CPI report</a>, which showed that the annual inflation rate stood at 3.7% last month. The print compared to economists’ expectations of a 3.6% increase and unchanged from the August reading.</p> 
<p>Core inflation, which does not consider energy and food costs, was reported at 4.1%, in line with consensus estimates and down from the previous 4.3%. On a monthly basis, the core CPI rose by 0.3%, also matching the projections.&nbsp;</p> 
<p>Last week, the non-farm payroll (NFP) report revealed that the US economy added <a href="https://tokenist.com/stock-futures-dip-as-nfp-data-shows-labor-market-still-hot/" rel="dofollow" class="deco-link">337,000 jobs</a> in September, twice the consensus estimates. The data showed that the US labor market remains incredibly robust despite a series of interest rate hikes imposed by the Fed over the past year and a half.</p> 
<p>Nonetheless, while most recent waves of economic data point to sticky inflation, it is unlikely that it will influence the US central bank to impose another quarter-percentage hike at the November policy meeting. Instead, the Fed previously hinted at plans to keep rates ‘higher for longer’ – a message that largely contributed to the recent <a href="https://tokenist.com/bonds-with-10-years-maturity-have-plunged-46-since-may-2020-as-rout-continues/" rel="dofollow" class="deco-link">bond market rout</a>.&nbsp;</p> <iframe src="https://tokenist.substack.com/embed" width="100%" height="320" style="border:1px solid #EEE; background:white;" frameborder="0" scrolling="no"></iframe> 
<p><em><strong>If the Federal Reserve doesn’t hike rates in November, will it raise rates in December? Let us know in the comments below.&nbsp;</strong></em></p> 
<p>The post <a rel="nofollow" href="https://tokenist.com/gold-hits-two-week-high-at-1890-after-cpi-report/">Gold Hits Two-Week High at $1,890 After CPI Report</a> appeared first on <a rel="nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Gold Hits Two-Week High at $1,890 After CPI Report

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