The price of gold decreased on inflation data in the United States, but this is why the reflection is imminent
The price of gold fell on Friday, when investors’ reaction to American inflation data was. The commodity decreased by 1.1 % and traded at $ 2,844 an ounce in the immediate market at the time of the press. The second consecutive daily loss is challenged from the recently painted tariff tensions.
Personal Consumption Expenditure Expenses for Personal Consumption (PCE) came by 2.6 % on an annual basis in January, in line with the expected number. The monthly PCE (except for food and energy prices) was 0.3 %. PCE was the title in 2.5 %, similarly matching moderate expectations.
PCE is the preferred federal reserve inflation scale, and the latest numbers arouse the possibility that interest rates will remain high for a longer period. Like the scenario, the land pressure on the price of gold in the coming weeks.
However, US President Donald Trump’s threats to a 25 % tariff on the European Union imports can lead to turbulent economic shrinkage that can raise the demand for safe gold. New fluctuations are likely to start next week when American tariffs are launched against Canada and Mexico.
The coming weeks have also created a platform for increasing the demand for gold from central banks that seek to expand economies against an environmental tariff system. China has already shown signs of a renewed appetite for the commodity with its first six -month purchase in January, and more central banks are likely to join.
Gold price prediction
The gold prices axis at $ 2,860 and the procedure below shows this level control by sellers. The yellow metal is likely to find the first support at $ 2,830. The lower lower momentum will collapse to less than this level and the path for the second support test can open at $ 2,811.
On the other hand, the transition above $ 2,860 will indicate the beginning of the upward momentum. With buyers control, the first resistance is likely to be $ 2,877. The breaking of this level will nullify the narration of the negative side and the gains for the next obstacle test can extend at $ 2,894.
