© Reuters International gold prices are expected to fall below $ 1,655
On Thursday (October 13), international gold prices fluctuated in a tight range as market participants remained cautious ahead of the release of US inflation data. The data should support the Fed’s continued aggressive rate hike expectations and gold prices should fall below $ 1,655.
At 3:05 pm Beijing time, spot gold fell 0.34% to $ 1,667.35 an ounce; leading COMEX gold futures contract fell 0.21% to $ 1,673.9 an ounce; the US dollar index rose 0.13% to 113.415.
Edward Meir, analyst at ED&F Man Capital Markets, said: “Inflation will remain very sticky for some time and weigh on gold prices … in the short term, gold will be in the $ 1,620 to $ range of $ 1,620. 1740. Meir added that up on the charts, gold is still weak and any rebound in gold prices will be short-term as the Fed remains concerned about inflation and remains very aggressive.
US Consumer Price Index data will be released Thursday at 8:30 PM Beijing time and is expected to rise 8.1% year-on-year in September, which could solidify the fourth consecutive Fed’s expectations of rate increase of 75 basis points. Minutes of the September Fed policy meeting, released overnight, showed Fed politicians agreed on the need to adopt a tougher policy stance and then hold it there for a while to lower inflation.
The minutes showed that many Fed officials “pointed out that the cost of taking action to reduce inflation could outweigh the cost of taking excessive action.” objective of the committee.
“The Fed wants to tighten domestic financial conditions to combat consistently high levels of inflation and is determined to achieve this,” said Bob MILLER, BlackRock’s head of US fundamental fixed income. “In general, markets have adapted to this reality and various All measures of financial conditions have reached new levels of moderation. real interest rates, investment grade yields at worst, the US dollar and mortgage lending rates are now at levels not seen in more than a decade.Although credit spreads remain below the recessive levels of previous periods, the total cost of capital has risen significantly given the rise in risk-free rates. “
On the daily line, the gold price started a downward wave iii from $ 1,729 and the lower support observed the 38.2% target of $ 1,655. Wave iii was an underwave of the bearish wave (iii) which started at $ 1,808, and wave (iii) belonged to Downside ((iii)) the wave started at $ 2070.
