XAUUSD: Extra downside in store – UOB

Gold prices added to the weekly retracement on Wednesday. The downtick was on the back of a small build in open interest, which hints at the probability that extra losses could be in store for the commodity in the very near term. Against that, the $1900 mark per troy ounce emerges as a key contention area for the time being.

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US inflation figure for the year-over-year period rose to 3.7% from the previous rate of 3.2%, surpassing the market's anticipated rate of 3.6% for August. Additionally, the monthly core CPI increased to 0.3% from the previous 0.2% for the same month. This uptick was unexpected, as market expectations had been for it to remain unchanged.