
Gold Feels the Weight of USD, Yields on Hawkish Fed and CPI
Gold remains under pressure as hot US CPI, rising Treasury yields and hawkish Fed commentary support the US dollar. Bears eye another break below $4,000
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Gold remains under pressure as hot US CPI, rising Treasury yields and hawkish Fed commentary support the US dollar. Bears eye another break below $4,000

The trading week continues to unfold and the latest session has once again highlighted weakness around the euro against the U.S. dollar. EUR/USD is down nearly 0.3%, reflecting that the European currency continues to struggle to sustain a consistent recovery in the short term.

Bitcoin has fallen for five straight weeks, and a hotter October CPI report has added to the pressure. Record ETF outflows, forced liquidations and rising rate-hike bets leave $65,000 back in focus.

Over recent trading sessions, stability has become an increasingly important characteristic of gold's price action. Since the beginning of last week, the metal has gained more than 5.0%, reflecting that buying pressure has remained relatively consistent in the short term.

A CPI reading that comes in above, or even at, consensus expectations this month would keep the FOMC on track to hike, so only a notable downside surprise would be likely to drive significant market volatility - what does that mean for the US Dollar?

Australia's hot Q3 CPI strengthens RBA November hike expectations, but weaker employment and sentiment complicate the outlook for 2027.

Recent sessions have been particularly challenging for silver prices in the short term. Selling pressure has intensified considerably, resulting in three consecutive losing sessions and pushing the metal to a decline of nearly 8.5% over this period.

The trading week continues to unfold and weakness around the euro has once again become increasingly evident in the short term. This can be seen in the recent performance of EUR/USD, which has declined roughly 0.3% over the last three trading sessions, highlighting renewed strength in the U.S. dollar.

Hotter-than-expected US inflation has pushed USD/JPY above its 200-day moving average, putting 160 and the risk of Bank of Japan intervention back in focus. The breakout still needs to hold, and a failure could send the pair sharply lower.

EUR/USD looks oversold as the US dollar rally loses momentum. With hot CPI expectations potentially priced in, could inflation trigger a dollar pullback?

A 0.6% m/m reading in headline CPI, while scary at first glance, is already expected and presumably discounted into the current market prices. Instead, the “core” reading will be more impactful for the Fed and markets - see what it means for the US dollar!

Crude Oil Price Outlook: Crude oil remains the market’s dominant narrative despite conflicting headline signals

Dow Jones weakness links rising crude oil and Treasury yields with pressure on stocks, while a rebound leaves the broken uptrend unconfirmed.
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