Gold prices testing $1800 ahead of US inflation data
Gold ticked down but was largely unchanged after the U.S. Producer Price Index (PPI) rose more slowly in July, coming in at 9.8% on an annual basis versus the expected 10.4%.
On a monthly basis, the PPI fell 0.5% in July after June’s 1% advance. Core PPI, which strips out volatile food and energy prices, rose 0.2% month-on-month after June’s gain of 0.3%. And the annual core PPI advanced 9.8% after June’s acceleration to 11.3%.
The initial weekly jobless claims rose by 14,000 to 262,000 in the week to Saturday, slightly more than markets were expecting.
Economists’ consensus calls projected initial claims to come in at 263,000 following the revised level of 248,000 reported in the previous week.
The four-week moving average for new claims – often viewed as a more reliable measure of the labor market since it flattens week-to-week volatility – increased to 252,000. Last week’s four-week moving average was revised down to 247,500, the U.S. Labor Department said on Thursday.
Continuing jobless claims, which represent the number of people already receiving benefits, were at 1,428,000 during the week ending July 30, an increase of 8,000 from the previous week’s revised level of 1,420,000.
The four-week moving average rose to 1,399,250, an increase of 23,750. And the previous week’s four-week moving average was revised up by 250 to 1,375,500.
Traders watch the jobless claims data very closely to gauge its impact on the Federal Reserve’s employment side of the monetary policy mandate.
Gold moving in range between $1700 to $1850 per ounce and it making a box market pattern. However, in daily chart gold is moving in a down trend which testing a trend line at $1800 as resistance so sell position is recommended for short term trade with stop loss at $1815 and take profit at $1760. Buy position should wait to buy at support at $1730 per ounce with stop loss function at $1700.
Analyzed by: Mr. Chhea Chhayheng Business Manager of PP Link Securities
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