Gold market analysis: U.S. CPI slightly higher than expected in April, gold rebounded slightly

The U.S. unseasonably adjusted CPI for April released at 20:30 on Wednesday recorded an annual rate of 8.3%, down from the previous value of 8.50%, but higher than the expected 8.10%. After the data was released, spot gold went out of the deep V trend and fell by $15 in the short-term to a minimum of $1834.83. After that, it recovered all the lost ground and rebounded above the 1850 mark.



The U.S. CPI for April, which was not seasonally adjusted, recorded an annual rate of 8.3%, which was lower than the previous value of 8.50%, but higher than the expected 8.10%. The monthly rate of CPI in the United States recorded a seasonally adjusted 0.30% in April, which was higher than the expected 0.20% and a sharp decrease from the previous value of 1.20%. In addition, after excluding volatile food and energy prices, the US core CPI rose at an annual rate of 6.2% in April, which was not seasonally adjusted, higher than the expected 6%. April core CPI recorded a monthly rate of 0.6%, higher than the expected 0.4%. While the latest report suggests U.S. inflation may have peaked, the figures underscore the magnitude of price increases in the economy, which, combined with strong wage growth, suggest high inflation will persist for some time. After the data was released, money markets increased bets on a rate hike by the Federal Reserve, raising rates by 70 basis points in June from 68 basis points previously. Overnight, Cleveland Fed President Mester said the Fed needs to see convincing signs of slowing inflation before it slows the pace of rate hikes. Some analysts believe that this high inflation figure has greatly reduced many investors' hopes that the United States has reached its peak inflation. Therefore, the Fed will remain hawkish and may reconsider raising rates by 75 basis points. Markets now expect the Fed to raise rates by nearly 200 basis points for the rest of the year, up from just 185 basis points earlier.

In terms of technical graphics, gold dropped and rose and closed in the sun yesterday. The Asian market inertial dropped and touched the annual line of 1832 to support and stabilize. The European and American markets rebounded and closed at a high level with the second step back. The daily line closed with a mid-yang line, up to $1857.90. | oz. The daily structure of double yin and single yang rebounded and corrected. In terms of structure, it is still in a downward trend. Although there is a rebound, it is not enough to judge a reversal. The short-term 4-hour chart rebounded due to the second dip. In the short-term, it is not ruled out to carry out a rebound and see-saw. Once again, we must wait for the space of yesterday to be taken back, and then it can be further extended after breaking the low. Otherwise, it is easy to maintain the short-term above the low for correction. Of course, the current space is not a reversal, and the short-term intraday period is first treated as a shock idea.

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Bank of China Guangdong Branch Wang Gang Source: Bank of China official website