Does the American inflation index pay gold prices towards a new penetration?

2 days ago

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Does the American inflation index pay gold prices towards a new penetration?

Gold prices stabilized today, Tuesday, against the US dollar, with markets awaiting a balance between positive indicators in commercial talks between the United States and China on the one hand, and the escalation of geopolitical tensions on the other hand. The increasingness on Iran’s nuclear program has provided additional support for gold prices, which remained coherent above the level of support of $ 3,300 an ounce. General inflation increased by 0.3% on a monthly basis in May, compared to 0.2% in April, while the annual rate rises to 2.5% from 2.3%. It directly affects the market expectations about interest rates, which in turn is a major factor in the movements of the US dollar and gold prices. London. Kevin Haysit, director of the American National Economic Council, also expressed his optimism, saying that “the meeting will be short with decisive handshake,” adding that the United States may reduce export restrictions, with the opening of the supply of rare ground minerals in large quantities.

& bull; Positive statements from former US President Trump strengthened the positive atmosphere, as he indicated that he received “good reports” of meetings.

& bull; Chinese customs data showed that China’s exports to the United States decreased by 35% in May on an annual basis, which is the largest decrease since February 2020.

& bull; The possibility of raising restrictions on rare metal exports indicates reducing pressure on American supply chains, especially in the sectors of technology, defense and clean energy.

& bull; The last American job report showed the addition of the economy to 139,000 jobs in May, exceeding expectations, which reduced the pressure on the federal to reduce interest rates in the near term.

& bull; According to the “CME Fedwatch” tool, the markets expect that the federal will keep interest rates unchanged during the social and July social, with a weight of 54.7% for a possible reduction in September. A dollar, with support from short -term technical support levels. The following resistance is at 3,392 dollars, followed by a $ 3,400 barrier, while the upscale momentum can lead to the historical summit recorded in April at 3,500 dollars. At the average simple movement for 20 days (SMA) at 3,303 dollars, followed by the level of psychological support 3,300 dollars, then the Fibonacci correction level 23.6% at 3,291 dollars.