Gold is calm on Wednesday, as the spot price stands at $1245.94 per ounce in the European session. In the US, today’s highlights are Core CPI and CPI. The markets are keeping expectations low for the September readings.
Although US economic numbers have been strong overall, the lack of inflation remains a serious concern. Last week, PPI slipped to -0.1%, its first decline in four months. We’ll get a look at consumer inflation numbers on Wednesday, with the release of Core CPI and CPI. Soft figures would be an indication of weak consumer demand, which could hamper the US recovery.
Despite the efforts of the ECB, inflation levels in the Eurozone remain anemic, as German PPI came in at a flat 0.0%, shy of the estimate of 0.1%. The indicator has not produced a gain since December, as Germany continues to struggle with a lack of inflation. Eurozone Current Account, which is closely linked to currency demand, posted a surplus of EUR 18.9 billion, little changed from the previous release of EUR 18.7 billion. This reading disappointed the markets, as the estimate stood at EUR 21.3 billion.
XAU/USD October 22 at 10:45 GMT
XAU/USD 1245.94 H: 1249.37 L: 1244.94
XAU/USD Technical
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1186 | 1215 | 1240 | 1252 | 1275 | 1300 |
- Gold has shown little movement in the Asian and European sessions, as the pair continues to trade in a narrow range.
- On the upside, 1252 remains a weak line. 1275 is stronger.
- 1240 is an immediate support level. 1215 is next.
- Current range: 1240 to 1252.
Further levels in both directions:
- Below: 1240, 1215, 1186, 1156 and 1136
- Above: 1252, 1275, 1300 and 1322
OANDA’s Open Positions Ratio
XAU/USD ratio is pointing to gains in short positions on Wednesday. This is consistent with the pair’s movement, as gold has posted small losses. The ratio has a majority of long positions, indicative of trader sentiment in favor of gold breaking out and gaining ground.
XAU/USD Fundamentals
- 12:30 US CPI. Estimate 0.0%.
- 12:30 US Core CPI. Estimate 0.2%.
- 14:30 US Crude Oil Inventories. Estimate 2.8M.