Decision time for gold looms
Gold has tested the key $1800 a few times now and so far unable to break above it. Yet, it hasn't created a bearish reversal there either. Not yet anyway.
Today's hotter-than-expected PPI print called into question the “peak inflation” narrative, although UoM's survey showed inflation expectations fell.
Gold traders will be facing one of the most important weeks of the year next week. We will surely get a clear direction from upcoming CPI inflation data and the Federal Reserve. These events have the potential to set the directional bias for the greenback until at least the end of the year.
We will have the likes of SNB, BoE and ECB all to look forward to Thursday of next week, too.
Depending on the outcome of these events, we may see a clear trend form for gold - and indeed many other markets.
If by Thursday the precious metal finds itself above $1800 then that should give the bulls the green light to power ahead as we approach year-end. But If by Thursday gold has formed a key bearish reversal signal and there's been some downside follow-thru, then it is back to square one for the precious metal.
Let's wait for gold to show us the direction then trade accordingly. Patience is key here.
By Fawad Razaqdada
Today's hotter-than-expected PPI print called into question the “peak inflation” narrative, although UoM's survey showed inflation expectations fell.
Gold traders will be facing one of the most important weeks of the year next week. We will surely get a clear direction from upcoming CPI inflation data and the Federal Reserve. These events have the potential to set the directional bias for the greenback until at least the end of the year.
We will have the likes of SNB, BoE and ECB all to look forward to Thursday of next week, too.
Depending on the outcome of these events, we may see a clear trend form for gold - and indeed many other markets.
If by Thursday the precious metal finds itself above $1800 then that should give the bulls the green light to power ahead as we approach year-end. But If by Thursday gold has formed a key bearish reversal signal and there's been some downside follow-thru, then it is back to square one for the precious metal.
Let's wait for gold to show us the direction then trade accordingly. Patience is key here.
By Fawad Razaqdada
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