The international price of gold is stepping back to the support of $ 1666
On Tuesday (Nov 8), the international price of gold continued to be under pressure and stepped back to the support of $ 1.666. Cautious investors remain on the sidelines ahead of key US inflation data coming later in the week. The data could influence the pace of future Fed rate hikes.
At 14:48 Beijing time, spot gold fell 0.26% to $ 1,671.07 an ounce; leading COMEX gold futures contract fell 0.39% to $ 1,673.9 an ounce; the US dollar index rose 0.20% to 111.403.
The US Consumer Price Index report will be released on Thursday (November 10), which could influence the Fed’s future monetary policy outlook. Preliminary estimates are that US main CPI is expected to drop to 8, 0% in December from 8.2% of the previous one, while the main CPI should drop to 6.5% from 6.6% of the previous one.
Yeap Jun Rong, IG’s market strategist, said the gold price met resistance and retreated near $ 1,680, which could keep some people on the sidelines waiting for a stronger market catalyst. “A higher than expected inflation reading could cause concern over the Fed’s continued aggressive rate hikes, which would provide a negative scenario for gold.”
On Monday (November 7), holdings in the world’s largest gold-backed exchange-traded fund (ETF), SPDR Gold Trust, fell to 905.48 tonnes, the lowest level since early 2020. looking at the mid-term elections in the United States, which will determine control of Congress and potentially stimulate larger market moves.
Michael Langford, director of business advisory firm AirGuide, said: “Gold ETF outflows are weighing on gold prices … Combined with persistently high inflation and mid-term elections in the US, gold is expected to be under pressure until Thursday when the US mid-term elections are more likely to see investors reposition themselves in riskier asset classes and reduce their exposure to gold. “
On the hourly chart, the price of gold has moved back to the support of $ 1,666, which is the 23.6% Fibonacci retracement level in the upside range of $ 1,616 – $ 1,682. If this support is broken, gold could drop further to $ 1,657, which is the 38.2% Fibonacci retracement level of the aforementioned range.
