The bullish runs in Gold and the US stock market continue unabated ahead of a key release due today of new US inflation data.
- There is a release today of a key data point which will be closely watched: US CPI (inflation) data, which is widely expected to show a decline in its month-on-month increase from 0.9% to 0.3%. A lower figure should see the US stock market and Gold move higher, while a higher-than-expected rate will likely spark a short-term selloff in these assets. This is because it will be seen as crucial to the Fed's path of rate cuts over the coming month, with markets currently expecting three rate cuts of 0.25% each.
- Gold has remained very bullish after reaching new record highs yesterday, with Gold still looking stronger than Silver as it broke to an all-time high just above $3,674 per ounce. Silver is also looking bullish, but less so as it trades below $41 per ounce. Trend traders will still either be in long trades here or keeping a close eye out for any new highs. Precious metals are in a strong long-term bullish trend, especially Gold.
- Stock markets remain generally bullish after it became very clear following last week's weak US jobs data that the Fed is bound to cut rates at its next meeting, and probably at the following two meetings remaining in 2025 as well. The S&P 500 Index made a new record high off hours earlier today and is showing very bullish price action, while the NASDAQ 100 Index trades near its record high. Trend and momentum traders will certainly want to be long of the S&P 500 Index.
- The Forex market has started the week with a bit more volatility than we saw last week, with the New Zealand Dollar the strongest major currency since today's Tokyo open, and the Japanese Yen the weakest. Weakness in the Japanese Yen is a persistent theme, which many analysts explain as a growing belief that even though Japan's GDP growth has become more positive, it is not yet strong enough to justify any rate hikes.
- US President Donald Trump is working to impose very high tariffs together with the EU on India and China for buying Russian oil. President Trump wants to pressure Russia over the Ukraine war, and this will be even truer today following the Russian drone swarm that violated NATO airspace over recent hours in Poland.
Top Forex Brokers