Gold Bullish: Will economic data hold back its appreciation?
During the Asian session, gold has experienced a significant price increase due to U.S. consumer data that revealed higher than expected inflation and fears that interest rates may be higher than expected. It has reached a high of $2,195.02 before retreating to $2,163, finding a temporary consolidation point there. Its previous range was between $2,100 and $1,962. While consumer prices have cooled expectations of interest rate adjustments by the Federal Reserve, the Fed is still far from its 2% annual inflation target. The odds of a June cut according to the CME Group are 64.9%, compared to 35.1% of staying unchanged.
Here the link from [url= cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html]CME - FEDWatch
A resilient U.S. economy scenario could influence a less attractive gold for investors, while a weakened economy with low demand and high inflation could have the opposite effect.
After a 4.6% rise during the Asia-Pacific market, gold experienced a 1.82% correction following the data generating the aforementioned cooling of expectations. The volume profile indicator price bell shows a strong uptrend, with a checkpoint at $2034, suggesting possible corrections towards that area. The RSI divergence indicator, currently at 73.85% overbought, indicates the possibility of a pullback towards $2094 before reaching new highs around $2,232. Industrial production, retail sales and unemployment data, as well as tomorrow's sovereign debt auctions are awaited to see how gold and oil perform this week.
Ion Jauregui - Analista AT
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
Here the link from [url= cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html]CME - FEDWatch
A resilient U.S. economy scenario could influence a less attractive gold for investors, while a weakened economy with low demand and high inflation could have the opposite effect.
After a 4.6% rise during the Asia-Pacific market, gold experienced a 1.82% correction following the data generating the aforementioned cooling of expectations. The volume profile indicator price bell shows a strong uptrend, with a checkpoint at $2034, suggesting possible corrections towards that area. The RSI divergence indicator, currently at 73.85% overbought, indicates the possibility of a pullback towards $2094 before reaching new highs around $2,232. Industrial production, retail sales and unemployment data, as well as tomorrow's sovereign debt auctions are awaited to see how gold and oil perform this week.
Ion Jauregui - Analista AT
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.