The gold market fluctuated during Wednesday’s trading day as the PPI statistics came in at 0.4% month over month instead of the projected 0.2%. In light of this, we are essentially in a holding pattern and awaiting Thursday’s CPI statistics, which will be the week’s biggest news story. As a result, I believe gold will continue to be volatile, and I believe we are at the threshold of a decision-making area.
Remember that the $1680 level has been significant on numerous occasions, and I believe that it will continue to garner some interest. It was a region that had been supported for at least a few years but was lately penetrated. We then pushed away from the 50-Day EMA. Currently, we are just below the important $1680 mark, therefore I believe it is only a matter of time till we break down further.
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The $1600 level is the subsequent objective, followed by the $1500 level. Ultimately, I prefer fading rallies in this environment, unless the CPI falls, which I do not believe will occur. In light of this circumstance, I believe that we got a bit ahead of ourselves, but it is likely that we will continue to experience a great deal of downward pressure. Remember that interest rates will have a significant impact on what occurs next on the gold market, so pay close attention to their movements.