Gold Movement
Gold prices traded higher by 1.36% against the USD in the 24 hour period ending 23:00GMT, at 1339.19 per ounce, on broad gains in commodities and as signs of simmering inflation in the US lifted the yellow metal prices.
Yesterday, the producer prices in the US stood flat in July, adding to worries that inflation is running too low, indicating the US central bank might not end its stimulus until inflation begins to trend higher.
Meanwhile, world’s largest gold consumer, India turned the screw on gold buying tighter, banning imports of coins and medallions and making domestic buyers pay cash, a day after hiking import duty on the precious metal to a record 10%.
In the Asian session, at GMT0300, Gold is trading at 1341.05, 0.14% higher from yesterday’s close.
Gold is expected to find support at 1324.47, and a fall through could take it to the next support level of 1307.90. Gold is expected to find its first resistance at 1352.11, and a rise through could take it to the next resistance level of 1363.18.
Later in the day, the US consumer price inflation (CPI) report will be key for determining the near term trend in the yellow metal prices given the weak producer prices reported yesterday.
The yellow metal is trading above its 20 Hr and 50 Hr moving averages.
