Gold Pulls Back Ahead of PPI: New Trend or Trap?
Gold prices entered the European session under pressure, trading within the US$4,375–US$4,385 per troy ounce range after previously hitting a more than two-month high. The pullback was driven by profit-taking, even though relatively benign US CPI data for July had lowered expectations for a Federal Reserve rate hike in September.
Fundamentally, sentiment regarding gold remains not entirely bearish, given the cooling US inflation and previously weak labor market data. However, the market is now awaiting US PPI data for further confirmation. A cooler PPI reading could pressure the dollar and yields, potentially allowing gold to retest the US$4,400 level; conversely, "hot" data could extend the correction as expectations for a Fed rate hike might rise again. (Asd)
Gold price at the time of this analysis: $4,375
- Buy if the price moves to $4,385
- Sell if the price moves to $4,365
Resistance 2: $4,410
Resistance 1: $4,395
Support 1: $4,355
Support 2: $4,340
Note: This article is analytical in nature and does not constitute definitive advice. Please consider the impact of fundamental and technical developments on trading before making any investment decisions.
Source: Newsmaker.id