GOLD PRICE OUTLOOK:
- Gold prices mark time near US$1800, Fed outlook in focus
- August US CPI data may surprise higher, punishing bullion
- Breaking below $1750/oz might bring 2021 lows into view
Trade Smarter - Sign up for the DailyFX Newsletter
Receive timely and compelling market commentary from the DailyFX team
Subscribe to Newsletter
Gold prices have been idling since last week's explosive one-day selloff , with traders seemingly waiting on the next clue in the ongoing Fed policy outlook debate before committing one way or another. That trigger may come by way of August's US CPI report.
A modest cooling is expected, with the core inflation rate inching down for a second month to hit 4.2 percent on-year. That would still put price growth well above average of 2.2 percent average prevailing in the past three decades. Indeed, the last time 4 percent was breached before 2021 was in 1991.
Leading PMI survey data as well as wage growth figures embedded in August's official US labor-market figures suggest an upside surprise may be in the cards. That may stoke speculation of a hawkish outturn at next week's FOMC meeting, weighing on non-interest-bearing and perennially anti-fiat bullion.
GOLD TECHNICAL ANALYSIS – WAITING FOR DIRECTION NEAR 1800 FIGURE
Gold prices await direction at familiar support. A daily close below 1787.37 may set the stage for a decline to test support running down into 1755.50. A push below the US$1700/oz figure and eyeing 2021 lows near 1676.91 may follow thereafter.
Key resistance remains at 1834.14, a barrier that has decisively capped upside progress since mid-July. Breaking above that es the next layer of resistance running up into 1870.75. Another push above the $1900 figure to challenge May's swing top at 1916.53 might be in scope beyond that.
Gold price chart created using TradingView
GOLD TRADING RESOURCES
- What is your trading personality? Take our quiz to find out
- See our guide to build confidence in your trading strategy
- Join a free live webinar and have your questions answered
--- Written by Ilya Spivak, Head Strategist, APAC for DailyFX
To contact Ilya, use the comments section below or @IlyaSpivak on Twitter
Legal Disclaimer: MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.