CME Gold rallied to $1,791.8, hitting its highest point in 2 months. It later lost $11 and is now trading at $1,780.8.
Gold is currently trading at $1,780.8 following the release of Producer Price Index data from the United States.
This move comes while some more positive signs for CME Gold are out as new United States Producer Price Index data fell short of the 0.4% projected by analysts with a reading of 0.2% while failing to improve upon the previous reading from last month (0.2%).
Meanwhile, United States NY Empire State Manufacturing Index (Nov) released today at 13:30 UTC with a figure of 4.5, while the previous figure was -9.1. United States Core PPI (MoM) (Oct) came out at zero, while a consensus of analysts was expecting 0.3.
Following today's trading session, chart analysis suggests Gold price action is currently oscillating around the $1,777.6 resistance level with prices moving above and below several times during the session. Trend-focused traders would be interested to note that the Commodity Channel Index (CCI) indicator is above +100, meaning the market price is unusually high compared to the rolling average. Momentum evaluation shows that the Relative Strength Index indicates Gold is in an overbought condition. According to asset volatility analysis, CME Gold's upper Bollinger Band® is at $1,778.69, this is a slight indication of a slowdown.
Notwithstanding Gold's appreciation in recent days, the technical outlook suggests its bullish run is now fading.
This rally in Gold's price coincides with other Metals as Palladium gained 3.31% and is currently trading at $2,107.
Though Gold is going up, other Metals are underperforming — Silver is down to $21.64, losing 46.8 cents, after closing at $22.11 in the preceding trading session. Platinum slumps 0.75% to trade around $1,025.3.
Today's gains are adding to bullish investor sentiment as robust macro data is expected for release later today; United States Crude Oil Inventories projected to come out at 1.36 million — worse than previous data of 3.92 million; data will be released tomorrow at 15:30 UTC.
Also worthy of note, United States Core Retail Sales is projected to outperform its last figure with 0.4%. It previously stood at 0.1%; data will be released tomorrow at 13:30 UTC. United States Retail Sales is projected to outperform its last figure with 1%. It previously stood at 0%; data will be released tomorrow at 13:30 UTC.
Gold has recovered 9.46% since descending to a significant low of $1,623.3 around a month ago.