Gold Prices May Shrug Off US CPI Data as Risk Appetite Collapses

Talking Points:

  • Gold prices arise to two-month high, buoyed by US / North Korea tensions
  • Crude oil prices lane holds reduce amid risk aversion, IEA news ahead
  • What will expostulate longer-term line trends? Find a forecasts here

Geopolitical jitters continue to expostulate financial markets amid worries about sharpening tensions between a US and North Korea, and line are no exception. Gold prices rose as haven-seeking collateral flows buoyed Treasury holds and sent yields lower, creation a non-interest-bearing steel appealing by comparison. Risk-sensitive crude oil prices declined alongside equities.

July’s much-anticipated US CPI total is on daub ahead. The title acceleration rate is seen rising to 1.8 percent, imprinting a initial boost in 5 months. An upbeat outcome echoing extended alleviation in US information outcomes relations to forecasts given mid-June competence have been expected to boost Fed rate travel bets, promulgation bullion prices lower. A durability risk-off mood might banish any thoughts of tightening however.

As for crude, a monthly marketplace refurbish from a IEA is on tap. The news might prominence a inability of OPEC-led prolongation cuts to countervail flourishing US supply, echoing a cartel’s possess monthly statistics published yesterday. They put July’s outlay during a tip nonetheless this year as member states free from concurrent cuts – particularly Libya – ramp adult exports.

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GOLD TECHNICAL ANALYSISGold prices continue to impetus upward, attack a two-month high. A mangle above a 50% Fibonacci expansionat 1285.74 opens a doorway for a exam of a 1293.90-95.46 area (61.8% level, double top). Alternatively, a pierce behind subsequent a 38.2% Fibat 1277.59 exposes a 23.6%expansionat 1267.51 anew.

Gold Prices May Shrug Off US CPI Data as Risk Appetite Collapses

Chart combined regulating TradingView

CRUDE OIL TECHNICAL ANALYSISCrude oil prices are contrast a bottom of a two-week converging range. A daily tighten subsequent a 14.6% Fibonacci enlargement during 48.48 exposes support during 47.30 (trend line, 23.6% level). Alternatively, a annulment above a 61.8% Fib retracement during 50.19 sees a subsequent upside separator noted by a 76.4% threshold during 52.11.

Gold Prices May Shrug Off US CPI Data as Risk Appetite Collapses

Chart combined regulating TradingView

— Written by Ilya Spivak, Currency Strategist for DailyFX.com

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