Gold Plunges as US Inflation Exceeds Expectations

Gold fell sharply by 7.7% to 38.38 following a stronger-than-expected US inflation reading, a development that weakens expectations for interest rate cuts. Although the RSI at 49 sits in neutral territory, the MACD is negative and below its signal line, indicating downward short-term momentum. The price is trading slightly above the SMA20 but below the SMA50; this mixed picture suggests the decline may remain limited. Over a 1-3 day horizon, downward pressure could persist, but since oversold conditions have not materialized, caution is warranted against expecting a sharp continuation of the selloff. In the short term, selling pressure is likely to be accompanied by volatility from bargain-hunting rebounds.

US inflation exceeding expectations is creating pressure on gold amid expectations that the Fed may delay interest rate cuts, potentially triggering short-term selling pressure in GLD. However, although the RSI at 69.6 is near overbought territory, there is no confirmed reversal signal yet; the MACD remains above its signal line and in positive territory. The price being well above the SMA20 and SMA50 indicates a strong medium-term trend, suggesting the decline may be limited. The 24-hour 2.1% drop suggests that some of the news impact has been priced in. A downward bias is likely in the short term, but bargain hunting may emerge after the sharp sell-off.