‘As figures are expected to show higher for prices for goods and services in the US in August, investors are displaying unease at buying gold, with prices moving in a range of $1,908 to $1,932 per ounce.
“Market sentiment is now rising, while the gold price is also starting to react to the upcoming important news regarding the US inflation
situation, which looks in favour of the greenback,” says Chhea Chhayheng, business manager at PP Link Securities (PPLS).
On Wednesday – September 13 – the price of the yellow metal opened at $1,912.47 per ounce, with a downtrend indicated by both the daily and weekly price charts, and a strong resistance level of $1,963 per ounce.
Based on the Forex Factory international economic calendar platform, the US Consumer Price Index (CPI), to be released late on September 13 Cambodian time, was expected to be positive.
While the monthly Core CPI was predicted to remain unchanged at 0.2 per cent, both the CPI and year-on-year CPI were forecast to gain same 0.4 per cent on their actual figures of 0.2 per cent and 3.2 per cent, respectively.
Market expert Chhayheng – with years of experience in technical analysis – drew attention to the upcoming release of other dollar-related data.
This included the Core Producer Price Index (PPI), Core Retail Sales and Unemployment Claims, all of which were due on Thursday night – September 14 – Cambodian time.
“The data is forecast to not bode well for the US economy – and there are both bearish and bullish trends for gold against the dollar possible as a consequence.
“Should gold rise and touch its previous resistance of $1,985 after the data is released, the big trend – the monthly trend at a high level – will continue, and be expected to create a new highest price.
“But what if the news makes the dollar rise? The current key support of gold is $1,908 – should it breach this and hit $1,900, the next key floor will be around $1,855,” says Chhayheng.