Where Are Gold and Bitcoin Heading After Inflation Data?

US inflation data was released at 15:30 today. The latest situation in Bitcoin and gold markets after the annual inflation that came below expectations is as follows…

June 13 US inflation data

Inflation in the US continues to fall as it has in recent months. The US annual inflation data (CPI) announced today was determined as 4%. Expectations were 4.1, the previous CPI was 4.9. Thus, the monthly inflation data came in as expected, while annual inflation of 4% was the lowest level in nearly two years.

Market participants expected prices to rise by 0.1% compared to the 0.4% increase in April 2023, while CPI data were expected to give signs of easing inflation. Investors are now waiting for a pause in rate hikes from the June 14 FOMC meeting. Before that, the reaction of the Bitcoin and gold markets to the inflation data of the day was positive…

Bitcoin price rises on inflation data

Bitcoin price has seen a bounce in the last 24 hours ahead of the CPI data. It reached the $26,000 range during the day. Following the release of the data, it jumped 3% compared to the daily low of $25,700. Then came some correction. The leading crypto is hovering just below the $26,000 region, which is the intraday high at the time of writing. In general, it reacted positively to the inflation data.

Ounce gold price rises to test $1,970 after inflation data

The gold price made a sharp jump from $1,950 to the $1,970 region after the release of inflation data. However, it was unable to reach higher levels afterward and was harshly withdrawn. If it breaks above $1,970, it will target $1,975 initially and then $1,985, the June high. On the downside, support emerges at $1,950 followed by $1,938. Gold price is currently gaining momentum on the downside from the first critical support at $1,950.

US markets overview

After the CPI figures, US yields fell sharply and the US dollar fell. The 10-year return fell from 3.74% to 3.69%. DXY hit a three-week low near 103.00.

What’s next?

After the Federal Open Market Committee (FOMC) meeting, the Fed will update its interest rate outlook on June 14. According to CME Group’s FedWatch Tool, rates that started the day at 75% at the time of this writing have risen to over 90%.

Meanwhile, multiple commentators noted that BTC/USD has closed the gap in CME Bitcoin futures since the weekend. On what’s next for BTC, Michaël van Poppe stated that $25 offers an opportunity to buy.

Finally, Binance order book data from Material Indicators clearly shows a lack of liquidity near the spot price with support and resistance before printing.

As we quoted as Kriptokoin.com, the inflation data of the day combined with more than one event. XRP price gained more than 7% after the Hinmann documents.