Get Premium Data for Cyber Monday: Up to 55% Off InvestingProCLAIM SALE

Gold: Soft CPI Could Fuel a Surge Above Key Resistance Near All-Time Highs

Published 2024-08-14, 05:48 a/m
GC
-

Soft Producer Price Index inflation data on Tuesday extended hopes of traders who believe that the Federal Reserve will cut interest rates by 50 basis points in September as still, the majority expects a 25 bps cut only.

Undoubtedly, the softer PPI numbers indicate that Wednesday could also witness probabilities of falling inflation in July.

Gold Futures Weekly Chart

In a weekly chart, gold futures show that a sudden this week after reports of Iran’s plan to strike back against Israel over the killing of a Hamas leader in Tehran earlier in August.

Despite this weekly gain, gold futures are not likely to remain below the significant resistance at $2525, an attempt to cross this could encourage gold bears tonight if they find CPI comes in weaker.

The current geopolitical scenario indicates a wobbly Wednesday as the gold futures are currently holding at a record-high which increases the possibilities of a sudden selling spree tonight that could push the gold futures to hit the lows of $2458 before this weekly closing.

Gold Futures Daily Chart

In a daily chart, gold futures are currently trading just below the significant resistance which could turn the situation more vulnerable for the bulls if the CPI data does not provide them sufficient support at this point. Immediate support is at 9 DMA which is currently at $2470, and the second support is at $2451.

Undoubtedly, the immense support level for gold futures will be at 50 DMA which is at $2400 from where longs would provide sufficient support.

Gold Futures 1 Hr. Chart

In a 1-Hr. chart, gold futures look extremely indecisive, which could extend the possibilities of wobbling moves could continue till this weekly closing.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.