In Monday’s trading so far, Gold price seems to be gathering pace for the next leg up. However, downbeat Chinese inflation data have rekindled China's economic growth concerns, reviving the US Dollar’s safe-haven appeal. China’s Producer Price Index (PPI) fell for a ninth consecutive month, down 5.4% from a year earlier after a 4.6% drop the previous month. The country’s Consumer Price Index (CPI) was unchanged YoY, compared with the 0.2% gain seen in May, the National Bureau of Statistics (NBS) reported on Monday. Cooling inflationary pressures in the world’s biggest Gold consumer could act as a headwind for the precious metal.
Gold traders could also refrain from placing fresh directional bets ahead of Wednesday’s critical United States CPI data release, which could significantly impact the Fed’s rate hike outlook as well as the US Dollar valuations. In the meantime, Fedspeak, broad market sentiment and Fed pricing will continue to influence the Gold price action.
Gold traders could also refrain from placing fresh directional bets ahead of Wednesday’s critical United States CPI data release, which could significantly impact the Fed’s rate hike outlook as well as the US Dollar valuations. In the meantime, Fedspeak, broad market sentiment and Fed pricing will continue to influence the Gold price action.
