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Market Analysis
Source: Newsmaker.id
Gold prices edged up during Friday's trading (Sept 11) after plunging nearly 2% in the previous session, as investors awaited the release of US inflation data that could influence the Federal Reserve's interest rate decision next week. Gold remains under pressure from expectations of a tighter Fed policy, particularly after cost components affecting the Personal Consumption Expenditures (PCE) index showed a faster rise in August. Prolonged energy supply disruptions are also feared to keep inflationary pressures high; consequently, the market now estimates a roughly 70% probability of a Fed rate hike at next week's meeting.
Market focus is now centered on the US Consumer Price Index (CPI) data scheduled for release tonight. Consumer inflation is projected to rise 0.4% month-on-month in August—up from a 0.1% increase the previous month—driven largely by a surge in gasoline prices amidst escalating conflict in the Middle East. On an annual basis, the CPI is expected to remain at 3.4%. If inflation comes in higher than forecast, expectations for a rate hike could intensify, putting pressure on non-yielding gold. Conversely, lower-than-expected data could ease pressure on the dollar and Treasury yields, potentially paving the way for a further recovery in gold prices. (arl)
Gold price at the time of this analysis: $4,335
- Buy if the price moves to $4,340
- Sell if the price moves to $4,330
Resistance 2: $4,370
Resistance 1: $4,358
Support 1: $4,328
Support 2: $4,316
Note: This article is analytical in nature and does not constitute a definitive recommendation. Please consider the impact of fundamental and technical developments on trading before making any investment decisions.
Source: Newsmaker.id