Today gold price is tumbling followed by a peculiar US Dollar recovery and the USD invasion was started at GMT 1AM, 27.09.18. However, the USD greenback managed to make gold falling back well below 1185.10 region. While writing this report, the gold was trading at 1184.14. Chiefly the political turmoil of Europe and Brexit no-deal issue played the key role behind this USD upsurge. However, we are anticipating that EUR will recover the loss by the end of next week, as PCE inflation data may watch a little bit of upside which is insignificant and EIA output may find huge lack as oil production is getting battered heavily followed by Iran sanction and Saudi output lag.
- Gold price falling as US Dollar gains on Italy budget troubles
- Crude oil price on a steadily holding on above 72.30 region
- US inflation data and EIA monthly output are on the focus
PCE Inflation data and EIA output report is due
As PCE inflation data and EIA output report is due, the PCE inflation data may remain insignificant and we are expecting a little bit of up rise in the inflation rate. On the other hand, the EIA output could certainly offer a heavy beating to USD, as energy production is falling and Trump himself is crying out loud in his tweets about it.
Gold technical analysis
As of now, Gold prices have fallen too far and it is still falling, as in the last 15 minutes, it has dropped 50 pips. The falling is happening rapidly and this quick fall may open the door towards below-1160.10. Alternatively, a move above 1190.09 could change the wind and open up the window of opportunity to break above 1200.11 again.
Right now, it is better to play safe for the gold traders. Oil traders must keep buying, as oil production is getting shrunk. It might just have been the right time to start selling USD, as political cloud over Italian budget may soon be over and the EURO might recover its losses by the end of next week.
Asian Stocks also gains as US Dollar strengths, read more here.
Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.