Gold has rebounded for more than three consecutive weeks after falling sharply to a low of 1750 at the end of June and trading between 1790 and 1818 last week for the week. This gold is trading at a price of 1800 slightly.

Recently, the US economy has recovered rapidly following the outbreak of the 19 scourges, and the prices of commodities and other commodities, such as oil, have risen steadily.

If we look at the graph of the US inflation index in May 2021, it rose to 6%, almost equal to the highest point 13 years ago (2009). But what is theoretical, as well as the practical implementation of the past 15 years in managing their economic well-being, economists and the central bank always set the inflation index in the maximum range of 2%.

Above, it is an important topic for investors, as well as economists, to worry about whether US inflation could out of control as 1970s. Gold is often used as a financial instrument to hedge against financial risks and inflation.

On June 22, 2021, US Federal Reserve Chairman Powell told a news conference: “The sharp rise in inflation in May (5%) is just a temporary increase.” And the central bank will be incredibly careful to keep inflation in line with its monetary policy (2%).

The sharp rise in inflation will make the cost of living of the American people exceedingly difficult, which will depreciate the US dollar. Tuesday, July 13, 2021 the release of the US Consumer Price Index (CPI0) for June, an indicator of inflation is expected to fall 5% compared to May 6%.

Technical Analysis Trading If the CPI report is still above 5%, the price of gold can be traded between 1790 and 1845.

Analyzed by: Mr.Nhim Kosol, Independent Analyst