Instrument: GOLD
Technical Analysis
Bullish Preference:
Buy position is envisaged if price trades above 1788.09 with take profit at 1789.78
Bearish Preference:
Sell position is envisaged if price trades below 1784.32 with take profit at 1782.56
Fundamentals:
3:00pm USD ISM Manufacturing PMI
Comment: Gold prices swooned as expected Friday as traders put the prior day’s soft third-quarter US GDP print in the context of accelerating inflation. The Fed’s favored PCE price growth gauge showed a rise of 4.4 percent on-year in September. That’s the highest since January 1991. More striking still, data from the Bureau of Labor Statistics (BLS) showed that the Employment Cost Index surged 1.3 percent in the third quarter, marking the biggest rise on record in at least 25 years. That portends a wage-push cost spiral whereby inflation proves to be much stickier than the Fed envisions at the moment.
Analysis: SCRUM Team