Gold and silver prices faced selling pressure on October 14 as markets awaited the US Consumer Price Index (CPI) report, expected to influence the Federal Reserve's interest rate decisions and drive precious metals trading.
Gold traded near $4,145–$4,146, down from approximately $4,200 in the previous session. The metal attempted a recovery overnight but fell again, keeping it under pressure. Support levels stand at $4,120, with resistance at $4,170.
Silver traded near $58.60 after declining from around $59.85, moving closer to the previous week's low of $58.50. Support is at $58.00, with resistance at $59.70.
CPI Impact on Precious Metals
The CPI report could determine the direction of gold and silver prices through three scenarios:
- Higher-than-expected inflation could increase selling pressure if investors expect the Fed to maintain high rates or consider further rate hikes
- Lower-than-expected inflation could support prices by reducing rate hike concerns
- Inflation close to expectations may lead traders to focus on the dollar, bond yields, and broader price movements
Gold has struggled as inflation remains above the Federal Reserve's 2% target. Higher interest rates make interest-bearing assets more attractive than gold, which does not pay interest. A stronger US dollar also puts downward pressure on gold prices.
Crude Oil and the Dollar
Crude oil traded near $95.15 after reaching a high of around $95.50, up from the previous session close near $91.70. Support stands at $93.50, with resistance at $96.50.
The US Dollar Index traded near 102.13, down from around 102.60 in the previous session. A weaker dollar has helped gold hold near $4,150 despite recent selling pressure. The index has support at 101.90 and resistance at 102.30.
