Gold Price Prediction – Price Slip and Trade Sideways Despite Rob Inflation

Gold prices declined as the dollar depreciated and pavement trade continued. US yields traded despite expected retail inflation being stronger than wholesale inflation. US consumer prices rose solidly in August, with cost of used cars and trucks soaring to a 51-year high as Americans moved away from public transportation due to fears of a COVID-19 contract.

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technical analysis

Gold prices can be seen sideways and down through trend line resistance and resistance near 1,960. Short-term support is seen near the 10-day moving average near 1,944. Additional support is seen near the 50-day moving average at 1,919. The medium-term negative momentum is decreasing as the MACD histogram is printing in red with an increasing trajectory that indicates consolidation. The short-term momentum has turned positive as a faster stochastic has generated a crossover buy signal. The relative power index is becoming higher, indicating a positive momentum acceleration.

CPI more than expected

The Consumer Price Index rose 0.4% in August, with gasoline, entertainment and household goods and operating costs also rising. The CPI rose 0.6% in both June and July, after falling three months earlier, as trade was shut to slow the spread of demand for coronovirus. On a year-on-year basis, the CPI rose 1.3% after a 1.0% increase in the 12 months through July. Expectations for CPI will increase 0.3% in August and may rise 1.2% on a year-on-year basis. Excluding volatile food and energy components, CPI gained 0.4% in the previous month, after growing 0.6% in July.