Investors are surging towards to the United States again! High oil prices exacerbate inflation concerns

Investors are surging towards to the United States again! High oil prices exacerbate inflation concerns

US inflation data is coming soon, gold prices plummeted and lost its key support on Aug 21st

On Tuesday (September 12th), the sharp drop in technology companies dragged down the US stock market, and traders are preparing for an important inflation report that is expected to provide more insights into the prospects for the Fed's next actions. The rise in crude oil prices has driven energy stocks higher and exacerbated concerns about inflationary pressures. The latest global fund manager survey by Bank of America shows a “significant shift” in investors' stock allocation, with investors surging towards to the United States and fleeing emerging markets. The yield of two-year treasury bond bonds, which are more sensitive to the upcoming actions of the Federal Reserve, exceeded 5%.

Given the small possibility of a continued decline in core inflation in the United States, investors have become cautious in predicting gold prices while waiting for August's US CPI data. If the inflation data unexpectedly exceeds expectations, it will strengthen market expectations for the Federal Reserve to raise interest rates, thereby boosting the US dollar and putting pressure on gold prices. Fundamentals tend to be bearish on gold.