Gold prices moved higher following a softer than expected PPI report that weighed on the dollar and paved the way for higher gold prices. Support is seen near the 10-day moving average at 1,314, while target resistance is seen near the September highs at 1,352. Positive momentum is decelerating as prices are forming a bull flag pattern which is a pause that refreshes higher.
PPI Declined in December
U.S. December PPI slid 0.1% on both the headline and core, with the latter softer than expected. There were no revisions to November’s 0.4%, 0.3% respective gains. The 12-month pace slowed to 2.6% year over year for the headline, versus 3.1% previously, with the core at 2.3% year over year compared to the prior 2.4% year over year. Goods prices were unchanged following the 1.0% surge in November. Energy prices were flat too, versus 4.6% previously. Food prices dropped 0.7% after the 0.3% gain. Services costs dipped 0.2% versus 0.2%.
This article was originally posted on FX Empire
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