Gold remains capped by $ 1260 post-China CPI

Dhwani Mehta FXStreet

Gold is seen struggling hard to extend its previous rebound into the Asian trades following upbeat Chinese CPI report, while the US dollar regains poise across the board capping further upside in the metal.

Gold supported at 5-DMA

Currently, gold trades modestly flat at 1257.53, reversing a spike to 1259.09, daily highs. Gold remains better bid as the bulls cheer better-than expected China’s CPI data, especially after a dismal Chinese trade report released a day before. China is world’s top consumer of the yellow metal.

However, the upside lacks follow-through as the US dollar jumps back on the bids against its major peers, after a brief corrective slide seen yesterday on profit-taking. The USD index trades +0.10% higher at 97.65.

All eyes now remain on the Fed speaks and a fresh set of US macro data, including retail sales and consumer sentiment, due later in the NA session for fresh incentives.

Gold Technical Levels

The metal has an immediate resistance at 1260 (round figure) and 1264.50 (200-DMA). Meanwhile, the support stands at 1250.53 (Oct 11 low) below which doors could open for 1241.36 (4-month lows).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

AUD/USD keeps range near mid-0.7100s as USD bulls await US CPI

AUD/USD steadies near mid-0.7100s in the Asian session on Friday, stalling the previous day's sharp decline to an over one-week low. The August PPI report reaffirmed Fed rate-hike bets and boosted the US Dollar on Thursday, which weighed heavily on the pair. However, hawkish RBA expectations limited losses for the Aussie as USD bulls now await the release of the US consumer inflation figures before placing fresh bets.

USD/JPY holds lower ground toward 154.00; looks to US CPI

USD/JPY holds lower ground toward 154.00 in the Asian session on Friday after hot Japanese PPI data bolster a more hawkish BoJ repricing and provide fresh impetus to the Japanese Yen. However, the downside appears capped as the US Dollar preserves overnight gains ahead of the latest US consumer inflation data.

Gold: Gains remain capped by $4,400

Gold regains composure and trades with decent gains on Friday, managing to refocus attention on the $4,440 mark per ounce troy. Therefore, the precious metal reverses Thursday’s decline as the US Dollar alternates gains with losses at the end of the week.

Ripple Price Forecast: XRP extends decline as returning ETF inflows fail to lift outlook

Ripple (XRP) falls below $1.33 on Friday, marking the third consecutive day of declines. The token continues to track the broader cryptocurrency market downturn, with investors closely monitoring heightened macroeconomic uncertainty ahead of the United States (US) Consumer Price Index (CPI) release and next week’s Federal Reserve (Fed) monetary policy decision.

Weekly focus – The hawks set the tone

Risky assets came under pressure this week as energy prices kept creeping higher and the ECB surprised the markets with a hawkish tone. The price of Brent crude touched USD 110 per barrel on Thursday night, highest since mid-May, as news emerged that the Yemeni Houthis had reached control of key port cities and islands near the Bab el-Mandeb strait.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.