November 9, 2021

Gold Is Still At The Top! Can It Be Above The $ 1,830 Price Level?

 Gold continued to find support to rise higher following the depreciation of the US dollar as investors cautious ahead of the release of US inflation data.

In the Asian session, spot gold traded higher at $ 1,823 per ounce, the highest level it has reached since early September. Gold futures traded little changed at $ 1,824 an ounce.

The greenback traded gloomily as investors focused on the release of US inflation data and were disappointed with the speeches of Federal Reserve (Fed) policymakers who are still ‘patient’ to raise interest rates.

Chairman Jerome Powell went on to suggest that they should not rush to raise interest rates until at least the reduction in bond purchases is over.

While Chicago Fed President Charles Evans said although he was worried about inflation remaining higher than before, he still believed the central bank would not need to raise interest rates until 2023.

Meanwhile, the 10 -year US treasury yield benchmark is still moving below the 1.50%level, prompting the attractiveness of gold to remain bullish.

This week, investors will see the release of inflation data, with the producer price index (PPI) to be published tonight and the consumer price index (CPI) on Wednesday.