GOLD
Gold prices continue to hover above the $2,300 level, unable to escape the relatively narrow range of the last few weeks. Traders' attention remains focused on the Federal Reserve's monetary policy, with uncertainty over the timing of the central bank's next move leaving them on hold for further clues. Today, significant developments could be seen with the release of PCE data, which is considered the Fed's favourite inflation measure. The reading is expected to show that, despite a slowdown, inflation is still higher than desired, creating headroom for the central bank to keep interest rates high for longer. This scenario caps the upside for gold prices, as higher rates increase the opportunity cost of holding bullion. Against this background, any surprise in today's PCE data release could see the price of the precious metal breaking out of the current range.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.