Bullion Lower After Fed’s Bowman Suggested Further Tightening

Gold prices rose strongly as the dollar softened following the mixed US July payroll data, which increases the chance of the Fed being on hold at its next meeting on September 20. Bullion reached a peak of $1946.83/oz on Friday and during the APAC session today of $1946.80 but it has eased since then and is now 0.2% lower at $1938.30, as US equity futures are stronger and US yields higher. The USD index is flat.

• Gold prices remain well below resistance at $1972.40, the July 31 high. They broke the 50-day simple moving average earlier but are trading below it again.
• The July US CPI prints on Wednesday the outcome of which is likely to influence bullion. It is expected to show annual headline inflation picking up with core steady. On the weekend, the Fed’s Bowman said that the FOMC may need to hike further to contain inflation.
• Fed’s Bostic and Bowman speak at the Fed Listens Event later on Monday. Bank of England chief economist Pill also speaks. In terms of data, there are only US June consumer credit and German June IP.