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Extends Bounce Off Yesterday’s Low, Friday’s US PCE Deflator In Focus

GOLD
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Gold is 0.3% higher in the Asia-Pacific session, after closing 0.2% lower at $2322.02 on Tuesday. The recovery from the session low of $2292 was assisted by a pullback in the dollar.

  • With Middle tensions cooling, the market’s focus has likely turned to key economic data later in the week that could shed more light on the Federal Reserve’s policy path.
  • The US PCE deflator, the Fed’s preferred measure of inflation, is due on Friday and is forecast to show that price pressures remained elevated in March.
  • According to MNI’s technicals team, the yellow metal breached the 20-day EMA, signalling the start of a corrective cycle. A continuation would signal the scope for an extension towards $2217.4, the 50-day EMA.
  • Note that a short-term bear cycle would allow a significant overbought trend condition to unwind. Key resistance and the bull trigger have been defined at $2431.5, the recent Apr 12 high.
  • Meanwhile, silver was up 0.6% on the day at $27.4/oz. By contrast, copper was down 0.9% to $443/lb, leaving the metal 2.5% off the near two-year high reached earlier in the week.
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Gold is 0.3% higher in the Asia-Pacific session, after closing 0.2% lower at $2322.02 on Tuesday. The recovery from the session low of $2292 was assisted by a pullback in the dollar.

  • With Middle tensions cooling, the market’s focus has likely turned to key economic data later in the week that could shed more light on the Federal Reserve’s policy path.
  • The US PCE deflator, the Fed’s preferred measure of inflation, is due on Friday and is forecast to show that price pressures remained elevated in March.
  • According to MNI’s technicals team, the yellow metal breached the 20-day EMA, signalling the start of a corrective cycle. A continuation would signal the scope for an extension towards $2217.4, the 50-day EMA.
  • Note that a short-term bear cycle would allow a significant overbought trend condition to unwind. Key resistance and the bull trigger have been defined at $2431.5, the recent Apr 12 high.
  • Meanwhile, silver was up 0.6% on the day at $27.4/oz. By contrast, copper was down 0.9% to $443/lb, leaving the metal 2.5% off the near two-year high reached earlier in the week.