Fed's Preferred Inflation Gauge Hits 3-Year High, Rate Hike Possibility on the Table

The news highlights that the Fed's preferred inflation gauge has reached a three-year high, bringing the possibility of a rate hike back into focus. This development could increase market expectations for a rate hike, potentially reducing risk appetite. Technically, the SPX is trading below its 20- and 50-day moving averages, with the RSI below 40 indicating weak momentum. The MACD line is below the signal line and in negative territory, supporting a short-term bearish trend. The 1.8% decline over the past 24 hours suggests continued selling pressure. Therefore, a downward movement in the short term is likely.

The news indicates that the Fed's inflation gauge has reached a 3-year high, with the possibility of a rate hike on the table. This situation could reduce risk appetite and put pressure on growth-oriented indices such as the NDX. Technically, although the RSI is approaching oversold territory at 37.4, the MACD continues to give a sell signal, and the price remains below the 20- and 50-day moving averages. In the short term, the likelihood of a continued downtrend is high.

The news highlights rising inflation, bringing the possibility of an interest rate hike back onto the agenda. While this scenario typically supports the DXY, current technical indicators do not provide a clear directional signal. The RSI stands at 51, in neutral territory, while the MACD is very close to its signal line and moving sideways. The price is balanced just above the 20- and 50-day moving averages. Therefore, rather than expecting a significant short-term rally or decline, the impact of the news is likely to remain limited.

The news highlights that inflation came in higher than expected, raising the possibility of an interest rate hike. This creates a negative environment for non-yielding assets like gold. Despite technical indicators being in oversold territory (RSI at 15.4), the MACD and moving averages confirm a strong downtrend. Selling pressure is likely to persist in the short term, though some corrective buying may emerge due to oversold conditions.