XAUUSD: Entry BUY?

The Bureau of Labor Statistics (BLS) recently released its report on the United States Consumer Price Index. According to the report, the CPI increased by just 0.1% for the month, causing the annual inflation level to drop from 4.9% in April to 4.0%. The Core CPI, on the other hand, rose 0.4% for the month and was up 5.3% from a year ago, in line with consensus forecasts.

Despite the cooling off of the headline CPI data, the Core figures suggest that inflation may still be a persistent issue, which could impact the US Federal Reserve's decision to hike rates. The Fed fund rates futures continue to show a 60% probability of a July Fed rate hike, while the US inflation report cements a pause this week. The probability for a June Fed rate hike pause jumped to 95% on the data release, compared to about 75% before the release.
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