CPI Inflation Data & Greece On Gold's Radar – HSBC

London (Apr 15)  Following soft U.S. economic data released Tuesday, HSBC analysts say gold’s next focus will be upcoming CPI inflation data on Friday, as well as Greece. “Gold may find support over renewed concerns of a Greek exit – or Grexit – out of the eurozone,” they said in a research note Tuesday afternoon. The analysts noted that there are varying headlines surrounding Greece’s negotiations with creditors, adding that “Greece is on the market’s radar in a less helpful way for the EUR." They say "[w]hile gold is historically positively correlated to the EUR, this correlation tends to break down during periods of ‘safe haven’ inspired buying."

Source: KitcoNews