Gold Up Slightly as Inflation Data Weakens
Gold prices extended gains after U.S. inflation data came in slightly weaker than expected, giving investors a faint hope that the Federal Reserve will continue its path of easing interest rates this year, which weakened the dollar.
Spot gold rose 0.3% to $2,671.27 per ounce. U.S. gold futures settled 0.1% higher at $2,682.30.
The data showed the Producer Price Index (PPI) rose 3.3% on an annualized basis in December, compared with a 3.4% increase expected by economists polled by Reuters.
The cooler PPI data sent the U.S. dollar index lower and that helped the bullion market, as lower inflation means the Fed may be able to cut rates sooner," said Jim Wyckoff, senior market analyst at Kitco Metals. The dollar index, down 0.6%, made gold cheaper for overseas buyers.
As of this writing, gold is at $2,673
RECOMMENDATION
- Buy if price moves to around $2,665
- Sell if price moves to around $2,680
Resistance Level 2: $2,690
Resistance Level 1: $2,683
Support Level 1: $2,663
Support Level 2: $2,650
DISCLAIMER
Note: This article is only an analysis and not a definitive reference. Pay attention to developments in fundamental and technical aspects of trading before making investment decisions.
Source: Newsmaker.id
