COST PRICE OUTLOOK:
- Gold prices profit, despite being stronger, was about $ 1,810 US dollar
- The key US CPI exceeded market expectations, increasing interest in gold as an asset to curb inflation
- Traders are monitoring $ 1,815 for short-term resistance, violation of which may lead to further benefits
Gold negotiable prices modestly higher time Wednesday APAC session despite a stronger US dollar and higher yields. Prices were stronger than expected US main CPI data overnight, which confirmed the yellow metal as a perceived charm inflation control reserve. The June figure came in 4.5% YoY compared to the 4.0% forecast (diagram below). It also represents the highest core price index reading from 2008, highlighting the pressure on real estate prices that could lead to Fed officials consider tightening earlier.
As a result, both 2- and 10-year-olds Treasury performance rose, putting downward pressure on equities and precious metals like opportunity cost of maintaining them rises. The DXY US Dollar the index rose to 92.81 before declining slightly, limiting the potential of bullion bars.
Today morning Ulcerative displacement of RBNZ stunned investors. The central bank decided large volume purchase (LSAP) program by 23 Julyrd, which marks the first major western central bank to withdraw from monetary policy since the pandemic. The improved labor market situation and economic outlook may also pave the way for RBNZ to raise interest rates as early as next year. In the case of gold, it is a warning sign as other central banks may follow the path of RBNZ to gradually normalize monetary policy.
US base price (CPI)– Last 12 months
Source: Bloomberg, DailyFX
Technical analysis of gold prices
Technically gold prices are likely to have accounted for “Rising triangle”(Chart below), which suggests additional profits if prices exceed the pattern ceiling. Right away resistance level can be found for $ 1,815. The trend lines supporting the “rising triangle” can be considered as immediate support. The MACD indicator was a bullish crossover and trends higher, alluding to it bullish the momentum is building.
Gold – a daily schedule
– Wrote DailyFX.com strategist Margaret Yang
Use the Comments or section below to contact Margaret @margaretyjy Twitter