🔤🔤 U.S. Economic Data Release Breakdown
- Core CPI m/m: 0.3% (in line with forecast, steady inflation pressure).
- CPI m/m: 0.4% (higher than 0.3% expected → inflation still sticky).
- CPI y/y: 2.9% (in line, stable but not easing further).
- Unemployment Claims: 263K (higher than 235K expected → weaker labor market).
⚡️ Market Takeaway:
- The higher CPI m/m signals persistent inflation, which keeps the Federal Reserve cautious about rate cuts. Normally, this strengthens the USD and pressures Gold (XAU/USD).
- But here’s the twist – the jobless claims spiking to 263K shows weakness in the labor market, balancing out the hawkish inflation print. This creates mixed sentiment:
- Strong inflation = bearish for gold (hawkish Fed).
- Weak jobs data = bullish for gold (Fed may not hike aggressively).
📈 Impact on Gold (XAU/USD):
- Expect increased volatility. Gold could see a short-term dip as inflation sparks USD strength, but then rebound on labor market weakness. Smart traders will look to Scalp within liquidity zones, waiting for market confirmation before heavy positioning.