December US CPI Incoming: How Will Gold Prices Move in the Short Term? Key Scenarios to Watch

【Bitcoin】U.S. December CPI upcoming release, how will the market react? Let’s go through several scenarios.

If the data is significantly below expectations, the expectation of rate cuts will materialize earlier, and gold prices are likely to see a rapid surge. If the data is slightly lower, gold will maintain a bullish trend, continuing to fluctuate and strengthen. If it meets expectations exactly, the market will remain on the sidelines, with gold repeatedly consolidating at high levels, waiting for the next signal.

Conversely, if inflation data exceeds expectations, especially if core CPI rises, real interest rates will increase, putting short-term pressure on gold prices and causing them to decline. But here’s a twist—if “high interest rates + sticky inflation” coexist long-term, the market may start to worry about stagflation risks. As a safe-haven asset, gold could then receive stronger buying support, with greater medium-term upside potential.