UNITED STATES August 15 2017 3:09 PM
NEW YORK (Scrap Register): Gold needs to see a break above $1,295 in order to avoid a drop back to $1,200, Hussein Sayed, chief market strategist at FXTM, wrote in a note.
Last week gold was boosted not only because of geopolitical tensions around the U.S. and North Korea, but also because of weak consumer prices in the U.S.
“Despite ticking higher in July, consumer prices are still 0.3% away from the Fed’s inflation target of 2%,” Sayed noted.
This new data will likely convince the Federal Reserve officials to embrace a more cautious approach about tightening policy further in 2017 and provide gold “with the support it needs,” he said.