Why Gold- XAU/USD Pumped Much In Last Week?
This week was a big week for traders anticipating a rate cut.
We saw jobs slowing materially (NFP revisions + unemployment rate hikes were key here), PCE and PPI inflation showing signs of cooling, and elections in the US, EU, and UK (as well as others). It's the year.
However - CPI is coming, and will indeed cut rates, or push them back.
In my opinion, metallics look good in any situation right now...
If we see a drop in CPI, rate cuts will come soon and continued dollar selling will be strong for gold.
However, if we see the CPI tick up or defy the rest of the data...concerns about stagnation could resurface, good for gold too.
The market is smart, and it already knows that. I believe this is part of the reason why the price of gold has rallied so much in the past few days.
