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Gold at day’s low after CPI data

FXStreet (Mumbai) - Gold prices declined after the Consumer Price Inflation (CPI) data in the US surprised markets on the upside.

Gold is trading 0.57% lower at the day’s low of USD 1243.80/Oz after the official data in the US showed CPI in September rose 0.1% month-on-month, compared to the market expectation of 0.0%. Moreover, the CPI has increased when compared to August month’s reading of -0.2%. Year-on-year the CPI increased 1.7%, above expectation of 1.6%.

Moreover, markets were expecting the CPI data to highlight weakening price pressures. However, a strong data is likely to push inflation expectations higher. Thus, the data is likely to erase the bets of a delay in the interest rate hike in the US. The US ten-year treasury yields have so far not reacted to the better-than-expected CPI data.

Gold Technical levels

Gold can fall to 1238 levels if the prices fail to sustain above 1245 levels. On the other hand, a rebound could see Gold re-test 1250 levels.

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