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U.S. CPI Is Upon Us

GOLD

Spot gold has stuck to a ~$3/oz range in Asia, operating just shy of yesterday’s NY session peak. This comes after Wednesday’s downtick in our weighted U.S. real yield monitor and the DXY (both of which finished off of session lows) provided support for bullion. Today’s U.S. CPI print provides the immediate material risk event, with the fears surrounding inflationary pressure well-documented. Technical resistance comes in at the 76.4% retracement of the Jan 25-28 down leg ($1,836.5/oz), which capped the rally on Wednesday. A break above there would expose the Jan 25 high/bull trigger ($1,853.9/oz). Initial support is seen at the Feb 7 low ($1,805.6/oz).

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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