Gold Bounces-off 1,820, Upsides Could Restart
- The precious metal, gold, is trading with a strong bullish bias at 1,826, having violated the resistance level of $1,815
- The Federal Reserve closely watches the CPI Index to determine the timing for the first pandemic-era interest rate hike
- The US Dollar Index, which measures the value of the greenback against a basket of six major currencies, dropped sharply on Wednesday, all the way down to 94.91
The US Dollar Index, which measures the value of the greenback against a basket of six major currencies, dropped sharply on Wednesday, all the way down to 94.91. This was the lowest level seen by DXY since November 12. The US Dollar Index fell to its lowest level in two months, below 95, which added great support to the rising prices of the precious metal on Wednesday.
The Federal Reserve watches the CPI Index closely, to determine the timing for the first pandemic-era interest rate hike. In March 2020, the Fed dropped its interest rates to almost zero, after the outbreak of the coronavirus pandemic. The central bank has signaled that it will increase interest rates as much as three times this year, and the first hike is expected to come between March and June.