Forex news and forex forecasts

11/08/2017 17:591

Gold surges to fresh two-month tops2

Gold continued gaining traction early NA session and touched a fresh two-month high near the $1285 region following disappointing US macro data. The US Dollar pared some of its early gains after data released from the US showed weekly jobless claims inched higher during the week ended August 4 and provided a minor boost to dollar-denominated commodities - like gold. Other data released on Thursday showed wholesale prices in July declined for the first time in almost a year, clearly indicating easing inflationary pressure. In an environment of a stubbornly low inflation, investors now seemed skeptic over prospects of additional Fed rate hike moves in 2017. Hence, Friday's consumer price inflation data would now be a key fundamental factor determining the next leg of directional move for the non-yielding yellow metal. Apart from the softer US data, the prevalent risk-off environment, amid escalating geopolitical tensions between the US and N. Korea, was also seen lending support to traditional safe-haven assets and further collaborated to the commodity's up-move to the highest level since June 8. Momentum beyond the $1286-87 region now seems to gain traction and lift the metal towards its next major hurdle near $$1293-94 zone. On the flip side, any pull-back might now find immediate support near $1280-79 area, which if broken could trigger a near-term profit taking fall back towards the $1272-70 region.3