Gold Price Drop May Continue on US PCE Inflation Data

Talking Points:

  • Gold prices dump as upbeat US GDP, ADP jobs information boosts US Dollar
  • Unexpectedly upbeat PCE acceleration total might boost Fed rate travel bets
  • Crude oil prices shrug off EIA information as Harvey-inspired dump continues

Gold prices continued to corner reduce as a supportive turn of US mercantile data bolstered Fed rate travel bets and gathering a US Dollar higher, undermining support for anti-fiat resources (as expected). Follow-through valid singular however as markets demeanour forward to Friday’s central US practice total before display clever directional conviction.

In a meantime, a PCE inflation sign – a Fed’s favorite – is in a spotlight. The cost enlargement rate is approaching to have slowed to 1.4 percent in July, a weakest given Dec 2015. Disinflation has bedeviled Fed policymakers all year and goes a prolonged approach to explaining a markets’ dovish disposition. An upside warn echoing new news-flow might make for a manly counter-argument.

Crude oil prices continued to deposit reduce amid worries about refinery disruptions pleasantness of Tropical Storm Harvey. EIA information display inventories strew 5.39 million barrels final week, feigning analogous API figures and outstanding forecasts job for a 1.9 million outflow, supposing usually brief relief. Monthly DOE supply statistics are on daub forward though Harvey-related news upsurge might continue to take tip billing.

What are a elemental army pushing long-term wanton oil cost trends? Find out here!

GOLD TECHNICAL ANALYSISGold prices continue to shelter after unwell to reason onto an intraday crack of a 38.2% Fibonacci enlargement during 1311.94. A daily tighten subsequent resistance-turned-support during 1295.46 sees a subsequent downside separator during 1275.34, a Aug 25 low. Alternatively, a daily tighten behind above 1311.94 exposes a 50% enlargement during 1323.25. Negative RSI dissimilarity argues in preference of a downside scenario.

Gold Price Drop May Continue on US PCE Inflation Data

Chart combined regulating TradingView

CRUDE OIL TECHNICAL ANALYSISCrude oil prices continue to corner toward support during 45.46, a 50% Fibonacci expansion. Breaking subsequent that on a daily shutting basement exposes a 42.08-84 area (June 21 low, 76.4% level). Alternatively, a annulment behind above a 38.2% Fib during 46.62 opens a doorway for a retest of support-turned-resistance during 48.76.

Gold Price Drop May Continue on US PCE Inflation Data

Chart combined regulating TradingView

— Written by Ilya Spivak, Currency Strategist for

To accept Ilya’s research directly around email, greatfully SIGN UP HERE

Contact and follow Ilya on Twitter: @IlyaSpivak

About author