Gold was down $10 oz before the CPI data release but came back strongly.
Bullion.Directory precious metals analysis 22 July, 2014
By Christopher Lemieux
Senior FX and Commodities Analyst at FX Analytics
Core consumer prices, ex-food and energy, increased .1 percent, which was less than the general consensus.
According to Nariman Behravesh, chief economist at HIS Inc., “there is no reason to stress.” Although inflation hasn’t rapidly increased as many thought (largely due to the lack of money velocity), inflation has steadily risen in 2014; and the higher cost of living has impacted consumer spending – 70 percent of the US economy.
The lack of consumption is eating into retailers’ top and bottom lines.
Wal-Mart, the world’s largest retailer, is expected to continue an aggressive plan to discount in order to spur demand.
Gold quickly traded higher through the daily 200 EMA but was rejected at $1,316.7 per toz.
Silver traded higher, but price action was unable to break key resistance at $21.10 per toz.
The higher consumer prices will increasingly support precious metal prices, allowing key resistance levels to remain under pressure.
Look for gold to target $1,320 and silver to find its way to $21.18 per toz.
Bullion.Directory or anyone involved with Bullion.Directory will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading in precious metals. Bullion.Directory advises you to always consult with a qualified and registered specialist advisor before investing in precious metals.
Leave a Reply