The latest US June Consumer Price Index unexpectedly fell short of expectations and the previous reading. Following this data release, gold prices initially surged to $4,102, with investors initially feeling slightly euphoric as the data could potentially slow the pace of the Federal Reserve’s interest rate hikes. However, gold prices subsequently failed to gain further momentum and gradually retreated. After all, this is lagging inflation data. We will be watching tonight’s release of the US June Producer Price Index, a leading inflation indicator, and the latest Beige Book report from the Federal Reserve, released at 2:00 AM Hong Kong time on Thursday, which details the inflation situation in the 12 Federal Reserve districts. In the short term, investor concerns about the situation in Iran are likely to continue to intensify, significantly impacting the short-term upward trend followed by a pullback in gold prices.

A short position can be established around $4,091, with a short-term target of $3,988 for profit-taking and a stop-loss at $4,111.

Gold Price 1-Hour Chart:

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com