Gold prices initially benefited from the significant weakening of the U.S. dollar towards the end of last week. However, the boost seems to have subsided as gold futures stabilized around $1,930 per ounce once again.
Tim Waterer, the chief market analyst at KCM Trade, commented via email that gold is now trading in familiar territory, meaning above $1,900 but below the 100-day moving average of $1,925.
The expectation of a July interest rate hike by the Federal Open Market Committee is limiting the short-term upside potential for gold, Waterer added.
Waterer emphasized that the focus this week will be on U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) data, as the likelihood of a rate hike in July is widely anticipated. However, the trajectory of U.S. interest rates between August and the end of the year remains uncertain, making inflation indicators crucial in influencing market sentiment.
Economists surveyed by The Wall Street Journal project a 0.3% increase in consumer prices for June, with the PPI expected to rise by 0.2% when released on Thursday.
In contrast, the ICE U.S. Dollar Index, which measures the dollar's strength against a basket of other currencies, declined by 0.3% to 102.01 on Monday, offering little support to gold prices denominated in dollars.
Myra P. Saefong
MarketWatch, an independent publication operated by Dow Jones & Co., produced this content. It is not affiliated with Dow Jones Newswires or The Wall Street Journal.
XAUUSD
SELL 1925 - 1927💯💯
✅ TP1: 1921
✅ TP2: 1916
✅ TP3: 1911
🛑 SL: 1931
Tim Waterer, the chief market analyst at KCM Trade, commented via email that gold is now trading in familiar territory, meaning above $1,900 but below the 100-day moving average of $1,925.
The expectation of a July interest rate hike by the Federal Open Market Committee is limiting the short-term upside potential for gold, Waterer added.
Waterer emphasized that the focus this week will be on U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) data, as the likelihood of a rate hike in July is widely anticipated. However, the trajectory of U.S. interest rates between August and the end of the year remains uncertain, making inflation indicators crucial in influencing market sentiment.
Economists surveyed by The Wall Street Journal project a 0.3% increase in consumer prices for June, with the PPI expected to rise by 0.2% when released on Thursday.
In contrast, the ICE U.S. Dollar Index, which measures the dollar's strength against a basket of other currencies, declined by 0.3% to 102.01 on Monday, offering little support to gold prices denominated in dollars.
Myra P. Saefong
MarketWatch, an independent publication operated by Dow Jones & Co., produced this content. It is not affiliated with Dow Jones Newswires or The Wall Street Journal.
XAUUSD
SELL 1925 - 1927💯💯 ✅ TP1: 1921
✅ TP2: 1916
✅ TP3: 1911
🛑 SL: 1931
