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Gold Prices Range Bound As Waiting For US CPI And FOMC

GOLD

Gold prices trended up during today’s session on a slightly weaker USD but have almost given up the gains to be almost flat to the NY close. It is now trading around $1782.30/oz. Gold prices fell overnight after UST yields rose.

  • Bullion reached a low today of $1777.64 before rising to a high of $1796.39. Resistance remains at $1807.90, August 10 high, which could be tested again if US CPI undershoots expectations. Support is at $1761.80, the 20-day EMA.
  • Tonight’s US CPI report for November will be important for gold prices given the inverse relationship with the USD. Headline CPI is expected to moderate to 7.3% y/y from 7.7% and core to 6.1% y/y from 6.3%. The FOMC announcement is Wednesday and a 50bp hike is expected.

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