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:
- 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.
Take a look and do trade wisely!