Gold Depreciates Sharply Ahead of U.S. PPI, Core PPI Data; $8+ Volatility likely in Gold; July 14, 2022

U.S. PPI & Core PPI m/m Results

Today U.S. has scheduled to release PPI, Core PPI and Unemployment Claims weekly data at 1230 GMT/1800 IST. It’s a leading indicator of consumer inflation – when producers charge more for goods and services the higher costs are usually passed on to the consumer. Food and energy prices make up about 40% of overall PPI which tends to mute the importance of the Core data.

Let’s see how gold has reacted during the previous data release:

June 14:

May 12:

Technical View:

XAU/USD (Gold):

  • Gold weakens sharply ahead of U.S. PPI data and remains well supported above $1,710 mark.
  • The pair made intraday high at $1,736 and Low at $1,712 mark.
  • A day chart and H1 chart with triple EMA suggest bearish trend for the time being.
  • A sustained close above $1,722 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,712 on H1 chart will test further supports.
$1,708 $1,722
$1,702 $1,728
$1,696 $1,732
$1,691 $1,737
$1,686 $1,742


Take a look and do trade wisely!
Good Luck