The U.S. PPI in October exceeded expectations and fell to 1.3% year-on-year, down 0.5% sequentially to the largest monthly decline in three and a half years since April 2020.The core PPI grew at zero in October and increased by 2.4% year-on-year to the lowest since the beginning of 2021. The unexpected slowdown made the market further believe that the Fed's interest rate hike cycle has ended, and the bets on interest rate increases in December this year and January next year remain at zero.
The New York Fed manufacturing index released at the same time in November turned positive at 9.1, rising to the highest since April.Retail sales fell by 0.1% in October, turning negative for the first time since March, but the decline was smaller than the expected 0.3%.Both of these data are positive for the dollar.
The Federal Reserve's next year's voting committee and San Francisco Fed Chairman Daley said that the data show that inflation in the United States has slowed further. The Fed should think carefully and remain patient for a period of time. Intermittent tightening may affect the Fed's credibility.(Implying that interest rates will be raised) Richmond Fed Chairman Balkin, who is also on the voting committee next year, said that the continued strong growth of the US economy may keep interest rates high.
Yesterday, gold fell as low as near 1955, basically the same as I expected, but it did not fall below 1950.
As can be seen from the chart, the resistance of 1975 is very high, and it directly broke the short-term support of 1960, so if you can't break through 1975 today, it is very likely to fall again.
We need to pay attention to the upper resistance point range:
1968-1972
1974-1976
Pay attention to the range of support points below:
1950-1955
1944-1949
So you can still sell in the resistance range, but the US unemployment benefits data will be released today (this data will also affect the trend of gold), you can also wait for the data to be released before selling.
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Trade active:
Gold is waiting for data
