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Instrument: GOLD
Bullish Preference:
A buy position is envisaged if the price trades above 1919.66 With Take profit at 1922.52
Bearish Preference:
A sell position is envisaged if the price trades below 1916.69 with Take profit at 1913.93
Fundamentals:
1:30pm USD CPI m/m
USD CPI y/y
USD Core CPI m/m
USD Unemployment Claims
Comment:
The yellow metal was trading down substantially over the past week, having come under pressure from a stronger dollar and rising yields. Worsening risk appetite also pushed traders towards the dollar, as investors bet on that U.S. interest rates will remain higher for longer this year. A bulk of gold’s losses were driven by expectations that U.S. consumer price index inflation rose slightly in July, remaining sticky and well above the Federal Reserve’s target range. Any signs of sticky inflation give the Fed more impetus to keep rates high and policy tight, which bodes poorly for non-yielding assets such as gold.
Analysis: SCRUM Team
