Forex Marketz Daily Forex News – Fully Markets Update
The price of spot gold (XAU/USD) and the price of gold in general moved higher after US consumer price index (CPI) data fell short of expectations. The US CPI data did post the first inflation pickup in five months, which is a bit encouraging. Still, the softer than expected CPI print, weighed on Treasury yields. This put pressure on the US dollar, as well. This was a good supportive environment for anti-fiat and non-interest bearing assets, like gold.
On the economic docket, this week, investors are looking at the upcoming US Retail Sales report, for July, which is now in focus. Economists are expecting US sales receipts rising 0.4 percent from the prior month. If it happens, this will be the biggest increase since January. A solid print will echo the cautious improvement in the flow with US data since June. In turn this may boost investor sentiment regarding another Federal Reserve interest rate hike in 2017. This will send the yellow metal lower. The Federal Reserve meets this week and is likely to stand pat. Investors will pay attention to rhetoric regarding the central bank’s time table to thin out their bloated balance sheet.
Gold Technical Analysis
Let’s look at today’s daily technical analysis for the bullion. The price of the yellow metal looks ready to challenge a Trend defining resistance zone. This area ranges from 1,293.90 to the double top near 1,295.50. A daily close above this zone, challenge the next upside barrier at $1,303.98 per ounce.
The alternative technical analysis notes a support level lining up at 1,285.75. A break below this first downside barrier challenges the next layer of technical support lining up at 1,277.60.
