Gold wave emerges after US report

According to the latest report from the US Bureau of Labor Statistics, the consumer price index for urban areas (CPI-U) increased by 0.3% in August after increasing by 0.5% in July.

In the past 12 months, the index of all commodities has increased by 5.3%. The increase was driven by positive indicators of gasoline, consumer goods, food and housing in August. The energy index increased by 2%, mostly thanks to the petroleum index increasing by 2.8%. The food index increased by 0.4%.

"The inflation figure released today is lower than the forecast of 0.4% studied by Wall Street Journal economists. However, the 0.3% increase shows that inflationary pressures are still at their highest level in the past 10 years. The inflation rate compared to last year decreased slightly from 5.4% in July to 5.3%.

At the same time, the report also put pressure on the USD index to fall to 92,625 points, down 0.03%. The reason for the decline also comes from the upcoming actions of the US Federal Reserve. Specifically, the report reduces the likelihood that the Fed will start cutting monthly asset purchases later.

According to Reuters, gold prices hit a weekly high as the Dollar depreciated (after US inflation increased more slowly than expected) leading to uncertainty about when the Fed will cut monetary stimulus.

I believe the Fed will mention cutting the asset purchase program at this meeting, but it will not officially announce the cut until November and will start implementing the cut before the end of the year, said National Securities strategist Art Hogan.

The released inflation figures have supported the precious metal's rally. Investors can expect gold prices to continue to rise in the next few months. According to Kitco, the first resistance level is at the MA200: 1809 USD line and the MA100: 1815.70 USD line. The strongest resistance level was at $1837 a month, the highest ever reached on September 3.