Gold trades near $1215 after US PPI figures miss expectations

  • Annual core-PPI ticks down to 2.7% in July in the U.S.
  • DXY reacts negatively to the data but recovers quickly.

The XAU/USD pair spiked up to a daily high at $1217.35 with the initial reaction to macroeconomic data releases from the United States but failed to stretch higher. As of writing, the pair was trading at $1215, adding 0.1% on the day.

The monthly report published by the U.S. Bureau of Labor Statistics revealed that the Producer Price Index stayed unchanged on a monthly basis in July following May's 0.3% growth and dragged the annual rate down to 3.3% from 3.4%. The core version that excludes food, energy, and trade service prices ticked down to 2.7% to fall short of the market expectation of 2.8%. The US Dollar Index fell to 95.15 in the first few minutes after the data release but was able to shake off the bearish pressure. At the moment, the index is up 0.12% on the day at 95.20.

Despite that recent movement the pair continues to fluctuate in its weekly range and struggles to make a decisive move in either direction. Later in the session, Chicago Fed Presiden Charles Evans will be delivering a speech.

Technical outlook

Following Monday's fall, the pair recorded modest recovery gains on Tuesday and Wednesday and is now holding on to small daily gains, helping the CCI indicator on the daily chart continue to pull away from the -100 mark to suggest that the bears are losing strength. The first support could be seen at $1207 (Aug. 8/Aug. 6 low) ahead of $1200 (psychological level) and $1194 (Mar. 10, 2017, low). On the upside, resistances align at $1220 (20-DMA), $1234 (Jul. 25/26 high) and $1249 (50-DMA).

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD leaning lower as the USD gains ground

EUR/USD is trading closer to 1.10, as the US dollar gradually advances. Two White House advisers expressed contradicting accounts of US-Sino trade talks, causing confusion. Germany refrained from adding fiscal stimulus.


GBP/USD dives below 1.25 as EU pours cold water on Brexit hopes

GBP/USD is falling 1.25, over 100 pips off from the two-month highs of 1.2582 as EU officials cast doubts about the seriousness of the new UK proposals on Brexit. 


USD/JPY Forecast: A breakout of 108.50 should put the 109.30 area on the radar

The USD/JPY is seeing some corrective downside after recent tops and failure at the 108.50 region, which continues to cap occasional bullish attempts for the time being.


Gold climbs further beyond $1500 mark, lacks follow-through

Gold edged higher for the second consecutive session on Friday, albeit remained well within a familiar trading range held over the past two weeks or so.

Gold News

Top 3 price prediction Bitcoin, Ripple, Ethereum: Ethereum points to the Moon as Bitcoin takes a break

ETH/USD exceeds $220 and is bidding to lead the market. Bitcoin sets a bear trap and recaptures $10,000. XRP stalls between technical levels and fails to consolidate $0.30.

Read more