Gold/USD():
After closing slightly lower against the U.S. dollar on Monday, gold opened today around 1910.13. After U.S. CPI data last week showed that U.S. inflation slowed, the U.S. dollar index continued to weaken. Monday coincides with Martin Luther King Jr. Day. After the gold price soared, some bulls also took profits.
In terms of negative factors, the U.S. dollar had a bad start this week, but the U.S. dollar index fluctuated and rose slightly. There are already some signs of stabilization and rebound, which put pressure on gold prices in the short term. At present, the market expects that PPI data will show signs of a further slowdown in inflation, while retail sales are expected to decline for two consecutive months, which will limit the correction space of gold prices, and the market needs to pay attention to the support of bargain hunting for gold prices.
In terms of bullish factors, the World Bank last week lowered growth forecasts for many countries this year to the brink of recession, as the impact of central bank interest rate hikes intensifies, the war between Russia and Ukraine continues and the world‘s major economic engines stall. Morgan Stanley lowered its forecast for the dollar index by the end of the year to 98 and expects the greenback to be weaker against the euro this year as concerns about the severity of the recession begin to ease. On the Ukrainian-Russian situation, the death toll from a Russian missile attack on the Ukrainian city of Dnepr rose to 40 on Monday, with dozens of people still unaccounted for, leading to the deadliest civilian casualties in three months. The city on the front line.
All in all, due to the steady rebound of the US dollar and the profit-taking of some gold bulls, the short-term trend of gold prices is volatile and callback. However, the prospect of economic recession and the geopolitical situation limited the decline in gold prices; as there were no important economic data released on Tuesday, the market outlook focused on Wednesday’s U.S. December PPI and retail sales data.
Suppression from above (upper resistance) 1910.10, 1912.30; from the downward direction, the lower support is 1908.70.
CPT Markets risk warning and disclaimer: The content of the above article is for reference only and is not intended as future investment advice. The articles published by CPT Markets are mainly based on international financial data reports and international news.
