Hello, fellow traders!
Here are some major news that could potentially affect Gold prices today.
📰 Key economic updates:
Japan Inflation Rate YoY
The current CPI released today is at 2.80% compared to 2.50% last month. This current figure is also higher than the long-term average of 2.43%. When CPI goes up, it means things are getting more expensive.
Why it matters for Gold: When inflation is on the rise, like the CPI suggests, people often turn to Gold since it tends to hold its value even when the cost of living goes up. With Japan's CPI climbing, we might see more demand for Gold, pushing its price higher.
U.K. Retail Sales MoM
Retail sales jumped up to 2.9% this month, way more than the predicted 1.6%. It's a good indicator of consumer spending and overall economic health.
Why it matters for Gold: When retail sales are strong, it means people are spending more, which is good for the economy. This can lead to higher interest rates and Gold getting less attractive since gold doesn't earn interest.
Germany Manufacturing PMI
The actual PMI for June 21, 2024, is 43.4 against the forecasted 46.4. Last month, it was 45.4. So, the manufacturing sector is shrinking more than expected and even more than last month.
Why it matters for Gold: A low PMI might signal a struggling economy. In such times, investors often look for safe havens, like Gold, to protect their money. The increased demand could push Gold prices higher.
U.S. Manufacturing Purchasing Managers Index (PMI)
The current PMI value for June 21, 2024 is 51.7, higher than expected 51.0 - the manufacturing sector performed better than anticipated. A PMI above 50, especially when it exceeds expectations, suggests economic expansion. This generally boosts investor confidence, potentially leading to a stronger dollar and higher stock market performance.
Why it matters for Gold: Gold often moves inversely to the strength of the economy and the dollar. When the economy is doing well, and the dollar is strong, gold prices tend to fall as investors seek higher returns from other assets like stocks.
📊 Let’s look at the data:
Gold has been pretty bullish, hitting the $2368 mark twice today. It's been showing strong cycles with noticeable uptrends followed by corrections.
Right now, Gold seems to be in a bearish phase.
Keep reading with a 7-day free trial
Subscribe to The Gold Trader to keep reading this post and get 7 days of free access to the full post archives.