Precious metals are on the front foot despite the mixed bag of economic data this morning, commodity analysts at TD Securities note.
Hot PCE data to push Gold higher
“Traders will continue to watch the data like hawks, particularly as it represents a key catalyst for the macro traders who have thus far been happy to remain underpositioned in Gold (XAU/USD) for the coming Fed cutting cycle.”
“In this sense, the PCE data will be top of mind after the below consensus CPI and PPI data, and we look for the core segment to advance at its softest monthly pace of the year at 0.13%. Further signs that inflation is easing could start to generate more certainty around the Fed’s cutting path and finally get the macro community comfortable getting back into the market.”
“On the flip side however, we see only limited scope for downside should data come in hot. Indeed, Commodity Trading Advisors (CTAs) hold a margin of safety above $2,208/oz before any material selling, while physical demand from central banks and Asian precious metals appetite continues to support the market.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : FXStreet – https://www.fxstreet.com/news/xau-usd-longs-may-shrink-on-weak-pce-data-tds-202406271446
