The bullion was trading flattish on Tuesday and was consolidating, awaiting further impetus for movement. It was hovering around 1,335 USD during the London session in the morning.
Later in the day, US PPI indices are due and the yearly change is expected to accelerate further to 2.9%, while the core gauge is forecast to tick higher to 2.6%. These numbers could cause some volatility on the financial markets.
However, more important data will be released on Wednesday, including CPI indices and the FOMC minutes. The market anticipates another rise in inflation to 2.4% year-on-year.
The greenback has eased in the previous three days, but this has failed to prompt buying of the bullion. The trend therefore appears sideways.
Bears will be defending two resistances in the near term – the first one stands at previous highs around 1,344 USD and if not held, further rise toward the bearish trend line at 1,348 USD could occur.
On the other hand, the support is at 1,325 USD and if bears will be stronger, the price of gold could decline to the 100 day moving average at 1,313 USD. In all cases we strongly recommend to have rigorous money and risk management.
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