Despite the tech stocks rally leading to a positive close on Wall Street, Asian markets are showing cautiousness and a mixed performance. This is due to investors carefully considering recent policy guidance from the Chinese and Japanese central banks.
Furthermore, traders are refraining from making new investments in anticipation of the upcoming Consumer Price Index (CPI) data from the United States, which is scheduled for release on Wednesday. The CPI data will have a significant impact on the interest rate outlook of the US Federal Reserve (Fed). It will also play a crucial role in shaping market sentiment leading up to next week's Fed policy announcements.
In this environment of caution, the US Dollar is starting to regain its strength after experiencing its biggest decline in two months due to profit-taking. As a result, gold prices are struggling to continue their upward momentum above the bullish 200 DMA barrier. The consolidation of US Treasury bond yields at higher levels is also putting pressure on gold prices since they don't offer any interest-bearing returns.
Furthermore, traders are refraining from making new investments in anticipation of the upcoming Consumer Price Index (CPI) data from the United States, which is scheduled for release on Wednesday. The CPI data will have a significant impact on the interest rate outlook of the US Federal Reserve (Fed). It will also play a crucial role in shaping market sentiment leading up to next week's Fed policy announcements.
In this environment of caution, the US Dollar is starting to regain its strength after experiencing its biggest decline in two months due to profit-taking. As a result, gold prices are struggling to continue their upward momentum above the bullish 200 DMA barrier. The consolidation of US Treasury bond yields at higher levels is also putting pressure on gold prices since they don't offer any interest-bearing returns.
Comment:
The August reading of the producer price index came in hotter than expected. It rose 0.7%, more than the 0.4% increase anticipated by economists polled by Dow Jones. However, excluding food and energy, core PPI increased 0.2%, in line with the estimate.
Comment:
🕯 SELL GOLD | 1915 - 1917
🔴 SL: 1920
🟢 TP1: 1910
🟢 TP2: 1905
🔴 SL: 1920
🟢 TP1: 1910
🟢 TP2: 1905
