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Commentary
US inflation continues to rise as illustrated today with the Core Inflation Rate YoY (Jun) coming in at 4.5% actual vs 4% forecast and the Inflation Rate YoY (Jun) in 5.4% actual vs 4.9% forecast.
However, whilst there is no major shift in FED monetary policy we see Gold continuing to move higher in particular with renewed concerns surrounding the coronavirus with a surge in cases due to the delta variant.
This could impact the global economic recovery strengthening demand for gold as a safe haven asset increasing prices.
We await Fed Chair Powell's Testimony tomorrow in case of any significant price action and will be monitoring the US dollar which would put pressure on Gold prices if it continues to strengthen as it has been doing over the past month.
Overall we see Gold continuing it's upward momentum as the 50 day MA is at $1836, above the 100 day MA at $1789 and the 200 day MA at $1826 indicating a buy signal.