US PPI Coming, Gold Prices Continue to Surge Higher?

Summary:

Focus on the U.S. PPI data tonight. As the forecast transaction dominates at the moment, it is not advisable to go against the market. However, pay attention to the opportunity for rational return after the end of the stage of emotional trading, and one can properly trade with small positions at key points.

SELL XAUUSD

EXP

EXPIRED

1803.56

Entry Price

1755.00

1833.00

4787.10 -2.03 -0.04%

Pips

EXPIRED

1755.00

1754.81

Exit Price

1803.56

Entry Price

1833.00

Fundamentals

During the Asian session on Tuesday (Nov. 15), spot gold oscillates at highs and is currently trading at $1780/oz, having broken the August 16 high of 1783.04 during the day. The expectation of a slowdown in the pace of interest rate hikes by the Fed still provides support for gold prices, and perhaps investors' attention will turn to the evening U.S. PPI data and price-in. The data will generally be transmitted to CPI in about 1 quarter and can be used as a forward-looking reference indicator for the level of U.S. inflation.

The market currently expects the U.S. October PPI growth of 8.3% year-on-year, the previous value of 8.5%, and if it meets expectations, this would be the fourth consecutive month of slowing growth. The market also expects the U.S. core PPI to grow 7.2% year-on-year in October, which is in line with the previous value and the lowest level in almost a year. Meanwhile, if it meets expectations, the gold prices will continue to be favorable; on the contrary, it may face a retracement.

Technical Analysis

In terms of the daily chart, gold prices have not yet shown obvious signs of topping, as it first quickly broke through the 1725-1735 strong resistance, and now comes to the 1760-1800 resistance range. If there is a favorable impact in the coming sessions, the price is biased to continue to surge higher and is expected to rise further to the 200-day SMA near 1803.56, which is also near the resistance of the August high.

XAUUSD: US PPI Coming, Gold Prices Continue to Surge Higher?_1

Trading Recommendations

Trading direction: Short

Entry price: 1803.56

Target price: 1755.00

Stop loss: 1833.00

Support: 1765.00/1735.00

Resistance: 1807.00/1835.00

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