FXStreet notes that gold has set a base above $1755/65 after retesting long-term support at $1682/71. Strategists at Credit Suisse expect XAU/USD to rise towards the $1835 mark.“Gold has retested and again held key support at $1682/71 - the 38.2% retracement of the entire 2015/2020 bull market and the recent and June 2020 lows - and the subsequent break above $1755/65 has seen a near-term ‘double bottom’ base established.”“We look for a recovery back to $1835, potentially the 200-day average and
CNBC reports that there is a growing body of strategists that believe investors are underestimating the outlook for consumer prices.David Roche, president of investment firm Independent Strategy, told that he believed the U.S. inflation rate, which stood at 2.6% in March from a year ago, could rise much further.“My own view is that we will see inflation of probably 3 or 4% by the middle of next year and that is completely inconsistent with, say, U.S. 10-year bond yields being at 1.6%. That yield
eFXdata reports that Credit Agricole discusses its expectations for BoC policy meeting."We believe that FX investors are cautious ahead of the April BoC meeting. Ahead of the meeting, investors expect the MPC to announce the start of its QE taper. In our view, a reduction in the pace of asset purchases could be indeed announced this week. Moreover, the BoC could push against the recent frontloading of rate hike expectations," CACIB notes. "Also focus will be on the Canadian CPI data for March.