Sunday, January 29, 2023

Gold prices move back to trend line support

Gold prices registered a fall after the breakout on Wednesday. The dollar continued to decline, giving rise to the yellow metal. The US Treasury yield declined after a softer than expected US PPI figure. The wholesale price inflation numbers are stronger than the consumer price index expected on Wednesday.

technical analysis

Gold prices eased slightly, breaking the 4-day winning streak. The price reverted to a downward sloping trend line that comes near $1,823. Additional support is seen near the 200-day SMA near 1,800. Resistance is being seen near the January high of 1,831. Short-term momentum has turned negative as the Fast Stochastic generated a crossover sell signal. Medium term momentum has turned positive as MACD (Moving Average Convergence Divergence) index generated a crossover buy signal. This situation occurs when the MACD line (12-day moving average minus 26-day moving average) crosses above the MACD signal line (9-day moving average of the MACD line).

PPI softer than expected

The Producer Price Index, which measures wholesale prices, was up 0.2% for the month, half the 0.4% expected. Measuring the PPI year-on-year, it came in at 9.7%, the highest increase in more than a decade. Monthly gains were a sharp drop compared to the previous two months, with gains of 1% in November and 0.6% in October. Excluding food, energy and business, core PPIs rose 0.4% for the month, down from 0.5% estimates. PPIs for both food and energy declined by 0.6% and 3.3%, respectively, during the month.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
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