Gold Edges Higher on Weaker U.S. Dollar Ahead of Inflation Report – Outlook Positive
Gold prices edged up on Monday as the dollar slipped after last week’s rally and investors waited for more data on U.S. inflation amid expectations of rising interest rates.
Gold was up 0.52 percent at $1,322.19 an ounce, as of 1149 GMT. Prices touched their lowest since Jan. 4 at $1,306.81 last week.
US consumer price data will be released on Wednesday that should give clearer signs on the pace of inflation and with it the frequency of the anticipated interest rate rises. Concerns of rising inflation triggered the global equity drop last week.
“After last week’s sell off in risk assets, we expect gold to be well supported, especially if volatility in financial markets persists” said Jordan Eliseo, chief economist at gold trader ABC Bullion.
On the technical charts, Gold is sideways, testing the 50 day EMA. The RSI is at 46.25 and the MACD is below the signal line. The market is trading between the moving averages, below the 9 day and the 20 day EMA, but above the 50 day, 100 day and the 200 day EMA.
Buy stop at 1322, take profit at 1326, stop loss at 1318