Yesterday, the forex market was extremely volatile. The CPI news came out at 3.8% annually, exceeding expectations by 0.1%, the highest in 3 years. This caused gold prices to fluctuate throughout the day, around $4,683, down 0.26% compared to the previous day.

What’s interesting is that Core CPI also surged to 2.8%, beating the forecast of 2.7%. This indicates that inflation is not only following oil prices from Hormuz but is spreading throughout the market. The next important forex news is the April PPI to be announced tonight at 7:30 PM. If this figure also comes out hotter than expected, it suggests inflation is flowing from producers to consumers, and the Fed might consider raising interest rates instead of cutting.

What the market has not fully priced in yet is the meeting between Trump and Xi Jinping in Beijing tomorrow. Everyone is focused on CPI and Iran news. Trump has already arrived in China and posted that he will bring up the issue of selling weapons to Taiwan. If the meeting turns out tense, gold could rally as a safe-haven asset. But if it turns out positive, there could be a strong sell-off.

From a chart perspective, gold prices are currently in a consolidation range between $4,679 and $4,715. The MACD indicates downside risk. If the price breaks above $4,715, momentum could return. But if it drops below $4,679, it could quickly slide down to $4,632. For short-term traders, the current risk-reward ratio is not favorable to enter positions. It’s better to wait for a breakout of this range and then monitor forex news today to determine the market direction.