Spot gold fell moderately after yesterday's surge
On Friday, July 12, spot gold saw a moderate decline in Asian trading hours following a sharp surge the previous day. The price currently hovers around $2406 per ounce. It has successfully broken through the initial target of $2400.00 per ounce, with the next target set at the historical high of $2450.00 per ounce. On Thursday, spot gold surged by $44.18 (1.86%), closing at $2415.22 per ounce, driven by the unexpected drop in the US CPI for June, which increased the likelihood of a Fed rate cut.
Time:
2024-07-13 08:45
On Friday, July 12, during the Asian market close, spot gold experienced a moderate decline after a sharp surge the previous day. The price is currently hovering around $2406 per ounce. The price has successfully broken through the first target of $2400.00 per ounce, with the next target set at the historical high of $2450.00 per ounce. On Thursday, spot gold surged by $44.18, a 1.86% increase, closing at $2415.22 per ounce, driven by the unexpected drop in the US June CPI, boosting the possibility of a Fed rate cut.
The US Department of Labor reported on Thursday that the US Consumer Price Index (CPI) fell 0.1% month-over-month in June, the first decline since May 2020, compared to market expectations of a 0.1% increase. After the release of the US CPI data, gold prices reached a high of $2424.57 per ounce.
The unadjusted US CPI rose 3.0% year-on-year in June, lower than the market expectation of 3.1%, reaching its lowest level since June last year. In addition, the unadjusted US core CPI recorded a year-on-year increase of 3.3%, lower than the market expectation of 3.4%, the lowest level since April 2021. The seasonally adjusted core CPI increased by 0.1% month-on-month in June, lower than the market expectation of 0.2%, the lowest level since August 2021.
Gold prices rebounded strongly yesterday and successfully reached our first target price of $2400.00 per ounce. The price broke through this level yesterday and closed above it, confirming that the bullish trend will continue to dominate in the coming trading sessions. This paves the way for gold prices to rise towards the historical high of $2450.00 per ounce, which is the next major target for gold prices.
Therefore, we expect gold prices to rise further in the intraday and short term. From the 4-hour chart, the 50-period exponential moving average (EMA) provides support for gold prices. It should be noted that if the price falls below $2400.00 per ounce, this could put downward pressure on the price during the day, causing it to fall back towards the $2340.10 area before attempting another rebound.
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