Instrument: GOLD+
Technical Analysis
Bullish Preference:
A Buy position is envisaged if the price trades above 1844.11 with take profit at 1848.48
Bearish Preference:
A Sell position is envisaged if the price trades below 1834.63 with take profit at 1830.11
Fundamentals:
2:30pm USD Core PPI m/m
USD PPI m/m
Comment:
Gold prices recover from 5-week low, but Fed fears limit gains Gold prices rose slightly from a five-week low on Thursday, but gains were limited as stronger-than-expected retail sales data and signs of sticky inflation in the U.S. spurred fears of more interest rate hikes by the Federal Reserve, pushing up Treasury yields. The yellow metal fell sharply on Wednesday after data showed U.S. retail sales grew substantially more than expected in January. The data, coupled with stronger-than-expected inflation readings for the month, fueled concerns that inflation will remain sticky, giving the Fed more impetus to keep raising interest rates this year. Gold prices have consolidated a bulk of their recent gains on these fears, as markets began dialing back bets that the Fed could potentially pivot this year. The central bank has so far maintained its hawkish rhetoric.
Analysis: SCRUM Team
