As we predicted yesterday, gold has hit the $1,285 mark in today’s trading which we also noted would become the new support level on its way to $1,300 and beyond.
While the threat of nuclear war between the US and North Korea is going to keep gold well supported as a safehaven asset, CPI figures from the US later today may be just what gold needs to push significantly higher.
. A disappointing figure is likely to leave the market predicting that the US Federal Reserve is finished with their rate hiking cycle this year, which is bound to benefit gold and should see it make a higher top beyond $1,294 and from a technical point of view will be very bullish.
If the CPI figures surprise on the upside we may see the price pull back to the former resistance level of $1,279 over the short term before reversing and continuing the uptrend.