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16 Sep 2015
Gold consolidates below $ 1109 ahead of US CPI
FXStreet (Mumbai) - Gold price on Comex stalled its four-day rally just ahead of 1109 levels and eases ahead of US open as the US dollar regained footing and swung into gains against its major competitors, with all eyes set on the US CPI figures.
Gold keeps the green ahead of data
Currently, gold trades 0.38% higher at 1106.80, retreating from session highs reached at 1109.10 in the European morning. Gold showed some solid strength as markets resorted to profit-taking after the recent weakness, in the run up to the Fed showdown.
Expectations that the Fed will hike its rates tomorrow have eased amid weak inflation in the US, worries over slowing economic growth in China, as well as the recent market volatility.
However, the upside in the yellow metal was capped after the 2-yr treasury yields, which mirrors the short-term interest rates expectations, shot higher to 0.81%, recording a 1.6% gain on the day. Thus, weighing on the non-interest bearing gold.
Later in the day, US inflation figures for August will be released, with expectations pointing to a 0.2% rate y/y, while an annual level of 1.9% is expected ex-food and energy.
Gold Technical Levels
The metal has an immediate resistance at 1109.10 (Today’s High) and 1111.70 (Sept 11 High) levels. Meanwhile, support stands at 1100 below which doors could open for 1094 (Aug 11 Low) levels.
Gold keeps the green ahead of data
Currently, gold trades 0.38% higher at 1106.80, retreating from session highs reached at 1109.10 in the European morning. Gold showed some solid strength as markets resorted to profit-taking after the recent weakness, in the run up to the Fed showdown.
Expectations that the Fed will hike its rates tomorrow have eased amid weak inflation in the US, worries over slowing economic growth in China, as well as the recent market volatility.
However, the upside in the yellow metal was capped after the 2-yr treasury yields, which mirrors the short-term interest rates expectations, shot higher to 0.81%, recording a 1.6% gain on the day. Thus, weighing on the non-interest bearing gold.
Later in the day, US inflation figures for August will be released, with expectations pointing to a 0.2% rate y/y, while an annual level of 1.9% is expected ex-food and energy.
Gold Technical Levels
The metal has an immediate resistance at 1109.10 (Today’s High) and 1111.70 (Sept 11 High) levels. Meanwhile, support stands at 1100 below which doors could open for 1094 (Aug 11 Low) levels.