The precious metal gold has witnessed a massive fall during the Asian session today; that sent gold prices so low to the four weeks support last seen on May 10, 2022. After pushing the price up to 1874, buyers were forced to take profits. The bulls quickly defended the last month’s support at $1836, moving the price from this region to the current position above 1840. The price is currently ranging as the market awaits the consumer price index report for the concluded month, determining the next significant move for gold this week. This report is due to be released on Friday.
Minor Factors that influenced gold prices from today’s economic calendar
Trade Balance
The trade balance shows the difference in value between the imported and exported goods and services at the end of each month. A positive number from this data indicates that more goods and services were shipped rather than dependent on imports. A lower negative value than forecasted will mean bullish for US Dollar and impact gold negatively. While a higher negative value than forecasted will favour gold and weaken US dollars. The forecast for this data is -89.6B. The previous record was given at -109.8 Billion.
Treasury Secretary Yellen Speech
The US treasury Secretary – Janet Yellen, is expected to speak on the Fiscal year 2023 budget before the Senate Finance Committee in Washington DC. Often, her speeches have been used to signal policy shifts to the public and foreign governments. Her tone this time will determine the direction to be followed by investors; whether to dump risky assets (including gold) and embrace the dollar or vice-versa.
Consumer Credit
This measures the change in the total value of outstanding consumer credit requiring instalment payments. The consumer credit calculations are directly used to measure consumers’ spending and confidence. Thus, a rising debt level is a sign that lenders are now fearless in giving loans. The consumers (borrowers) are also noticeably confident in their current financial position and eager to spend more money. The forecast for this data is 35.5B, while the previous is 52.4 billion. Higher readings from this data will mean positive and bullish for the US Dollar, negatively impacting gold.
