CPI Report Triggers Volatility in Bitcoin and Gold Markets

The recent release of the US Consumer Price Index (CPI) report has triggered price volatility in both Bitcoin and Gold. The report showed a seasonally adjusted increase of 0.1% in July, bringing annual inflation down to 3.4%, which eased slightly from June's 3.5%. This development suggests that the energy-driven surge in the second quarter is losing steam.

Gold is maintaining its breakout momentum, trading near $4,420, while Bitcoin continues to decline below $64,000. The varied price action follows market expectations for the CPI report, which broadly met forecasts. Meanwhile, market participants are pricing in nearly a 60% chance that the Federal Reserve will leave interest rates unchanged in September.

Bitcoin's technical analysis shows a bearish near-term tone, with the price holding beneath key moving averages. The ongoing slide below the upward support trendline reinforces the idea of a capped market. Initial resistance for Bitcoin appears at the round-figure $64,000 level, followed by the 50-day EMA at $64,575 and then the 100-day EMA at $66,717.

Gold, on the other hand, extends its breakout toward $4,500, holding a clear bullish near-term bias. The spot price has broken above key moving averages, with momentum remaining strong. Initial support for Gold lies at the 100-day EMA around $4,321, followed by the 200-day EMA near $4,287.