Article by: ETO Markets
The Fed's favorite inflation indicator, the annual Core PCE Price Index, increased 2.8% annually, faster than the 2.6% increase that was predicted. This gain was similar to that recorded in February. With slightly more than 30 basis points of easing anticipated this year, as opposed to the 40 basis points predicted a week ago, markets are pricing in the first Fed rate cut in September.
Gold sellers may start a new slump toward the 50-DMA at $… if they are able to establish a firm foothold below the latter on a daily closing basis. But before targeting the 50-DMA, gold sellers will also need to break through the support level at $...
To the upside, the first point of contention for regaining the 20-DMA support that turned resistance will be the high from the previous week. Upward, the $… round level will be tested on the way to the $… peak on April 22.
