Gold: Soft CPI Could Fuel a Surge Above Key Resistance Near All-Time Highs
2024.08.14 07:43
Soft inflation data on Tuesday extended hopes of traders who believe that the Federal Reserve will cut interest rates by 50 basis points in September as still, the majority expects a 25 bps cut only.
Undoubtedly, the softer PPI numbers indicate that Wednesday could also witness probabilities of falling inflation in July.
In a weekly chart, show that a sudden this week after reports of Iran’s plan to strike back against Israel over the killing of a Hamas leader in Tehran earlier in August.
Despite this weekly gain, gold futures are not likely to remain below the significant resistance at $2525, an attempt to cross this could encourage gold bears tonight if they find comes in weaker.
The current geopolitical scenario indicates a wobbly Wednesday as the gold futures are currently holding at a record-high which increases the possibilities of a sudden selling spree tonight that could push the gold futures to hit the lows of $2458 before this weekly closing.
In a daily chart, gold futures are currently trading just below the significant resistance which could turn the situation more vulnerable for the bulls if the CPI data does not provide them sufficient support at this point. Immediate support is at 9 DMA which is currently at $2470, and the second support is at $2451.
Undoubtedly, the immense support level for gold futures will be at 50 DMA which is at $2400 from where longs would provide sufficient support.
In a 1-Hr. chart, gold futures look extremely indecisive, which could extend the possibilities of wobbling moves could continue till this weekly closing.
