Summary:
- S&P 500 has seen 0.72% growth today.
- The value of (XAUUSD) gold has shown bullish signals in the market today.
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S&P 500 is rising during trading today
The U.S CPI report which offered an update on price increases across U.S for April was released by the U.S labour department on Wednesday. The report reflected there was some deceleration of inflation figures compared to March, however, the rate of price increases exceeded analyst expectations.
The CPI for April decelerated marginally compared to the March figures. The figures represent how far the Fed will have to go in the future regarding tightening monetary policy to fight the rising prices.
S&P 500 Price Chart
Will Gold rally in the wake of the CPI report?
Gold futures have increased in value today, the initial increase came before the CPI report was released by the U.S labor department, and the increase has continued after the release.
The lower than expected CPI figures bode well in the favour of the gold prices as uncertainty arises amongst investors on the Fed's next move. With volatility in the stock markets likely to continue, perhaps investors are trying to hedge their bets, driving the price of gold upwards.
Gold Futures Jun’22
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Sources: Finance.yahoo.com
