Inflation in the US Displayed a Minor Growth

This week, inflation in the US displayed a minor growth, around +0.2%, though it had no significant impact on the markets. A small price spike was visible around the publication of inflation: though it was stronger than previously, it was still lower than expected: the core inflation was posted at 4.7% vs the anticipated 4.8%.

This situation dashed hopes for the decline of the US dollar, as the “dovish FED” narrative is not developing right now. Gold is diving lower towards a psychological 1900 level. Considering the extremely low “market fear” and volatility of stocks and cryptos at historical lows, it is possible to see a seasonal spike in volatility.

It might potentially push Gold higher, as a protection asset.

Next week, traders will monitor key publications for the UK and Japan, which might incur some volatility in the currency markets and beyond.

Gold

Gold is floating down, amid a low level of fear across the board and rising yields of US bonds. Rising yields, however, probably, would be temporary, as probabilities of interest rate hikes don’t change much, even after an uptick in inflation.

The 1900 area is a congregation of 200-day moving average, which is the long-term dynamic support area, with the previous month’s low, which is an intermediate-term statistic support. If the price reaches this point, it may rebound higher with the continuation of the rally.

XOM

In our list, today, is Exxon’s Mobil stock, as energy markets are on the move: Crude oil and natural gas are gaining momentum. That’s why the “Oil and Gas exploration” sector might be interesting right now, especially considering a rotation from tech stocks towards other sectors.

A trade location around 200-day moving average and a breakout of the chart formation, makes XOM a candidate for a rally.