Trade gold with FXTM
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.