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Bullion Stabilises After Wednesday’s Post-Retail Sales Slump

GOLD

Gold prices are up 0.2% to $1840.50/oz after falling a percent on Wednesday following the strong US retail sales report driving up yields and the USD. Bullion reached a high today of $1842.64 following a low of $1834.56. The USD DXY is down 0.2%.

  • Gold is now trading below its 50-day simple moving average as better US data and Fed comments point to further tightening. Wednesday’s low of $1830.66 has now formed initial support.
  • Later today the Fed’s Mester, Bullard and Cook all speak. A hawkish tone from these officials would send bullion down further. In terms of data, there will be more detail on the inflation front from the January PPI, which is expected to see a pickup in monthly increases but the annual rates should ease. There are also January housing starts & permits, jobless claims and Philadelphia and NY business indices for February.

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