ANALYSIS
NQ100 Finds Support from PPIApr 14
U.S. Inflation Pressure in XAUUSD
The producer price index (PPI), reported by the US Department of Labor the day we left behind, increased by 8.5% annually in September, above the expectations of the markets of 8.4%. The data was 8.7% in the previous month. While this created the expectation that the US Federal Reserve (FED) would stick to the aggressive tightening path in order to reduce the persistently high inflation, it made it difficult for ounce gold to find demand against the dollar. Technically speaking, the yellow metal appears to be weakening in the minor channel. The end of 1656 support with declines may open the way for losses until 1628 behind 1642. In possible upward attempts, the range of 1684 – 1697 will be a strong resistance zone.
