GOLD PRICE OUTLOOK:
- Gold costs mark time close to US$1800, Fed outlook in focus
- August US CPI knowledge could shock larger, punishing bullion
- Breaking beneath $1750/oz would possibly deliver 2021 lows into view
Gold costs have been idling since final week’s explosive one-day selloff, with merchants seemingly ready on the subsequent clue within the ongoing Fed coverage outlook debate earlier than committing a technique or one other. That set off could come by means of August’s US CPI report.
A modest cooling is anticipated, with the core inflation fee inching down for a second month to hit 4.2 p.c on-year. That will nonetheless put value development nicely above common of two.2 p.c common prevailing up to now three a long time. Certainly, the final time 4 p.c was breached earlier than 2021 was in 1991.
Main PMI survey knowledge in addition to wage development figures embedded in August’s official US labor-market figures recommend an upside shock could also be within the playing cards. Which will stoke hypothesis of a hawkish outturn at subsequent week’s FOMC assembly, weighing on non-interest-bearing and perennially anti-fiat bullion.
GOLD TECHNICAL ANALYSIS – WAITING FOR DIRECTION NEAR 1800 FIGURE
Gold costs await path at acquainted assist. A each day shut beneath 1787.37 could set the stage for a decline to check assist working down into 1755.50. A push beneath the US$1700/oz determine and eyeing 2021 lows close to 1676.91 could observe thereafter.
Key resistance stays at 1834.14, a barrier that has decisively capped upside progress since mid-July. Breaking above that es the subsequent layer of resistance working up into 1870.75. One other push above the $1900 determine to problem Could’s swing prime at 1916.53 is perhaps in scope past that.
Gold value chart created utilizing TradingView
GOLD TRADING RESOURCES
— Written by Ilya Spivak, Head Strategist, APAC for DailyFX
To contact Ilya, use the feedback part beneath or @IlyaSpivak on Twitter