ANALYSIS
NQ100 Finds Support from PPIApr 14
Ounce Gold May Close the Week Negatively
Although there are concerns about a global recession, the main factor driving the price of an ounce of gold remains the expectation that the US Federal Reserve (FED) will increase interest rates by an additional 75 basis points at its crucial September meeting as a result of the high inflation rates dropping from their 41-year peak. In addition, non-farm employment data to be announced today will be closely followed in terms of ounce gold prices. As a matter of fact, the fact that the non-agricultural sector exceeds the market expectations of 300,000 people may create additional pressure on the yellow metal by strengthening the possibility that the FED will continue its aggressive tightening path. Technically, we see that the yellow metal, which has regressed to the lows of about 1.5 months, maintains its descending channel movement, although it has received some reaction. From this point of view, if ounce gold pricing is passed below the 1689 level with permanent closures, a regression can be observed to 1677 support, which will be the lowest level since March 31, 2021. The 1715 – 1726 range could be a stabilization zone.
