Gold at lowest level in 5 years

On Monday we found out that the Eurozone’s CPI (Consumer Price Index) ticked higher in October, surprising markets for the better. Eurostat’s release puts the 19-nations block’s inflation at 0.1% for the month that has just passed, up from September’s -0.1%. In comparison, 2014’s October had a 0.4% inflation. Mom (month-on-month) the CPI went up 0.1% after a 0.2% hike in September, in line with expectations.

Tuesday came with RBA’s (Reserve Bank of Australia) minutes, triggering a spike above the 0.71 barrier and sending the AUD/USD major lower, closer to Monday’s 0.7080 level.

The rally turned out to be mixed, RBA leaving the door wide open towards a possible easing, but at the same time picturing a positive Australian economic outlook. All in all, markets do appear to have already priced-out RBA rate cut especially after the solid Aussie data from last week.

The UK ONS (Office for National Statistics) released yesterday a new negative value for the annualized cost of living in the month of October, a subzero figure for the second consecutive month. The annualized CPI for the UK came out in line with estimations, remaining unchanged at -0.1%. Mom CPI was also the same as expected: 0.1%, while the core inflation reached higher to 1.1%, beating estimates and September’s 1.0%. BoE’s (Bank of England) latest quarterly inflation report shows interest rates could remain unchanged from the historical lows throughout 2016, any major risk of overshooting inflation remaining out of sight.

In the US, inflation as per CPI went up in October showing prices are heading towards Fed’s (Federal Reserve Bank) goal. There was a 0.2% hike in the CPI as per 12 months ending in October, not being recorded any change in the year ending with September.

The results exceeded the forecasted 0.1% rise from September’s 0.1%. The mom figure printed 0.2%, as well as the core mom. The annualized core CPI though stayed unchanged at 1.9% as estimated.

The yellow metal’s prices went down at its lowest levels since the early 2010’s, as yesterday’s greenback strengthen after the result from Fed’s inflation report, in line with what they expected for October. There was although a failed recovery attempt from the gold’s side, capped by the $1,100 on Monday. The lowest point for the trend was February, 2010’s $1,067 per ounce. Gold closed the 6th session in a row on loss, scoring gains only 1 day since the 28th of October.