"Inflation Data Sparks Gold Price Volatility: What's Driving the Market?"

1 min read
Source: DailyFX
"Inflation Data Sparks Gold Price Volatility: What's Driving the Market?"
Photo: DailyFX
TL;DR

The recent US economic data, with inflation above 2.0% and a resilient job market, suggests a potential shift in Fed rhetoric towards a more hawkish direction, impacting gold prices and the Nasdaq 100. The risk-reward profile for both assets appears unattractive at the moment, with the potential for a larger downward correction. Traders should closely monitor Fedspeak and exercise caution, as Fed policymakers may push back against a rate cut in March, potentially leading to bearish outcomes for precious metals and tech stocks.

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