Gold Prices Eye Breakout as US Inflation Data Looms
The upcoming US PPI and CPI reports will likely determine the next move in gold and silver prices, according to market analysts. Strong inflation data could support rate hike expectations in September and extend the decline in both metals.
However, softer data would reduce rate hike expectations and potentially support a recovery in metals. The tensions between the US and Iran may also create safe-haven demand for gold and silver.
The daily chart for spot gold shows that prices have been consolidating between the 50-day SMA and the 200-day SMA, ranging from $4,260 to $4,530. A break of either level will likely define the next move in gold, with a breakout above $4,530 potentially pushing prices toward the $4,800 area.
A break below $4,260 would open the way for a quick drop toward the $4,000 region.