Industry news:
"A softening in the core PCE deflator earlier this year was a big factor in the Fed's shift to a more accommodative stance. That key measure of inflation rose to 1.6% today and the sequential increase in recent months suggests modestly firmer footing in Q2, though not enough to dissuade the Fed from cutting rates."
Trading recommendation:
Gold did hit and then rejected of the strong resistance at the price of $1.422, which is sign that sellers are still present and there is not enough buying power for new highs on the Gold.
Red rectangle – Important resistance ($1.423)
Green rectangle- Support 1 ($1.400)
Green rectangle – Support 2 ($1.380)
Gold has been trading sideways in the well defined trading range between the price of $1.423 (resistance) and $1.380 (support). The price is near the resistance and you should watch for potential selling opportunities. Stochastic oscillator is flipping down and that is another good sign that there is potential for more downward movement. As long as the Gold is trading below the $1.437, I would watch for selling opportunities on the rallies.
Sell zone – $1.423
Profit zones – $1.400-$1.380
