Here’s the update for XAUUSD today, October 13, 2023. The gold price recorded a slight increase around $1,870 early Friday, returning to the two-week high of $1,885 reached on Thursday. This rise in gold prices occurred as buyers of the US Dollar (USD) paused amid declining US Treasury yields.

Current attention is focused on US economic sentiment data and speeches from Federal Reserve (Fed) members.

Investors are reassessing the more hawkish expectations from the Federal Reserve, prompted by US Consumer Price Index (CPI) data that exceeded forecasts.

The US CPI rose by 0.4% last month after a previous increase of 0.3% in August, according to the Labor Department on Thursday. On a year-over-year basis, the CPI inflation rate remained steady at 3.7% in September, matching August's figures and surpassing the estimated increase of 3.6%.

This inflation data strengthens the narrative around the Fed potentially raising interest rates for a longer duration, ultimately boosting the US Dollar and US Treasury yields from their recent lows.

Consequently, the gold price, which had previously reached a two-week high above $1,880, has fallen back, testing buyer demand below the $1,870 level. The Fed's tighter policy reduces risk sentiment, helping to lift the US Dollar and negatively impacting gold prices.

Susan Collins, President of the Federal Reserve Bank of Boston, commented on the latest inflation report, stating that it highlights the unevenness in price stability recovery, reinforcing her view that the central bank may need to raise rates again to control inflation.

The probability of a rate hike by the Federal Reserve in December has surged to 38%, according to the CME FedWatch tool, compared to a 28% chance prior to the report's release. Currently, the market estimates a 30% probability for a rate hike in December.

However, the reaction to the US CPI report was short-lived as sellers of the US Dollar returned on Friday. Nevertheless, risk sentiment remains bleak following weaker-than-expected Consumer Price Index (CPI) and Producer Price Index (PPI) data from China.

China's CPI stagnated at 0% YoY in September after a previous increase of 0.1% in August. The market had projected a rise of 0.2%. The PPI in China fell by 2.5% YoY in September, down from a previous decline of 3.0%. The market forecast was a decline of 2.4%.

Attention now shifts to the preliminary University of Michigan Consumer Sentiment and US Inflation Expectations data for new signals regarding the Federal Reserve's interest rate outlook. Speeches from Federal Reserve policymakers will also play a crucial role in influencing the assessment of the US Dollar as financial movements unfold towards the end of the week.


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Here’s the explanation regarding "XAUUSD Today: October 13, 2023 - Closed Above DMA 21." This analysis is based on fundamental and technical perspectives from reliable sources and is not intended as advice or solicitation. Always remember that this content aims to enrich readers' information. Always conduct your own independent research on other forex-related information to use as a reference in your trading.

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