Free Trial

Close To 50-Day MA, US CPI In Focus

GOLD

Gold has drifted lower, meeting resistance above $1790, last tracking at $1786. This is below the 50-day MA, which comes in at $1786.7, which continues to be a near term resistance point. Having said that, gold is holding most of its overnight gains, we are comfortably +$10 above lows from yesterday.

  • Gold got a boost from weaker USD sentiment overnight, as the DXY corrected lower. US real yields edged down overnight as well, back to +29bps. Today nominal US yields have been fairly steady.
  • Tomorrow's US CPI print shapes up as a key event risk for the precious metal this week. Recent upside surprises in inflation have coincided with sharp downside moves in gold.
  • Such event risk may keep us range bound to a degree in terms of spot prices.
  • The position slate is arguably cleaner compared to earlier in the year. CFTC positioning has only nudged back into a net long, after dipping into negative territory in late July. Still, ETF positioning in gold continues to trend lower.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.