Gold rose about 2% on Monday, the spot price reached above $4,100/ounce, while the dollar declined. Precious metal traders are excited to decline oil prices and are ready for U.S. inflation data coming at the end of this week
Spot Gold 1.7% rose to $4,141.14/ounce, while Gold Futures 1.8% rose to $4,149.65/ounce
“The last Monday gold was traded below $3,900, because August’s high was sold consistently after $4,700. This breakout effort was actually a counter-trend rally within a long improvement, which began after the historic high of $5,600 at the end of January. ""
“What does it mean that the correction is over and the bottom level is now made? It is quick to say now. But gold is making some encouraging moves, and the firm break above $4,200 and the holding this level in any pullback will strengthen the bullish logic. ""
on friday, gold had dropped when the us jobs report showed stunning growth. according to us bls, non-agricultural payroll extended 165k last month, significantly higher than estimated 65k. by adding employment figures of august and september improved by 84k, while the unemployment rate exceeded 4.1%
The inflation is still quite above the 2% target of the Fed, and this strong employment figure gives the scope to increase the rates to the Fed. High interest rates generally put pressure on non-available assets such as gold
NOW THE FOCUS IS ON THE US CONSUMER PRICE INDEX (CPI) AND THE PRODUCER PRICE INDEX (PPI), WHICH WILL COME ON TUESDAY AND FRIDAY RESPECTIVELY. THESE DATA WILL LOOK CLOSELY FOR THE INDICATION OF THE FUTURE RATE DECISIONS OF THE FED. THE CPI REPORT WILL NOT BE GIVEN A 12-MONTH PERCENTAGE CHANGE AS DUE TO US GOVERNMENT SHUTDOWN IN 2025
Before the Friday job report, gold had caught a bid after the Democratic victory in the US medium-term elections on Tuesday. This victory led to the end of the Iran conflict, fell oil prices, and gold benefited
Speaking of oil, the crude benchmarks dropped by 5.1% to $92.61 per barrel, which was the worst weekly deterioration after April 2020
IN THE PHONE INTERVIEW WITH CNN, PRESIDENT TRUMP SAID THAT THE PROBABILITY OF NEW MILITARY ACTION AGAINST IRAN IS VERY LOW IF DIPLOMATIC NEGOTIATIONS CONTINUE TO MOVE FORWARD
IN THE CBS 60 MINUTE INTERVIEW HE SAID, “I DON’T WANT, THERE’S NO REASON TO DO SO. ""
On Monday, Trump said on Truth social that he made “very good conversation” on Iran with the Prime Minister of the Qatar. Bazar, Saudi, UAE, Bahrain, Kuwait and others are favored by economic separation
“If there is a change in the Middle East, the U.S. is ready, but there is little likelihood right now. Israel and the entire Middle East is protected from the danger of Iran, we are looking for a positive direction of the end of this conflict and will always protect American interests. ""
Al Arabia reported that the new proposal of the west-Pakistan is ready to resume negotiations between Washington and Tehran. In this agreement the US will give Iran some uranium prosperity, release the Iranian property of $6–9 billion, and reopen the Gulf
In this article, Roshi Nair and Pranav Kashyap contributed
Findings for Gold traders:
GOLD IS STILL IN THE UPWARD DIRECTION AND THE LEVEL OF $4,200 CAN CREATE SIGNIFICANT SUPPORT. IF THE CPI DATA CAME BETTER THAN EXPECTED THE BULLISH STANCE CAN BE STRONGER, WHILE THE NEGATIVE SIGNAL CAN BRING DOWN THE PRICES. TRADERS SHOULD BE PREPARED FOR BOTH SCENARIOS