Gold consolidation supported at 4,280 resistance

Gold consolidation supported at 4,280 resistance Spot Gold TRADENATION:XAUUSD TradeNation Friday’s session is likely to be dominated by the US August CPI report, which will provide an important test of the inflation trend ahead of the Federal Reserve’s next policy decision. US CPI: The market will focus on both headline and core inflation, particularly services and shelter. A softer-than-expected reading would reinforce expectations for lower US interest rates, potentially weighing on the dollar and Treasury yields while supporting equities and gold. A stronger CPI could have the opposite effect, pushing yields and the dollar higher and creating pressure on rate-sensitive equities. University of Michigan survey: The preliminary September survey will provide an update on consumer confidence and, importantly, inflation expectations. A rise in longer-term inflation expectations could reduce the market’s confidence in further Fed easing. US fiscal position: The federal budget balance is likely to attract attention from bond markets, particularly given elevated Treasury yields and concerns about the scale of US government borrowing. UK GDP: July monthly GDP will provide an early indication of whether the UK economy is gaining momentum or continuing to stagnate. A stronger figure could support sterling, while a weak reading would reinforce expectations for further monetary easing from the BoE. Japan PPI: Japan’s producer-price data will offer another indication of underlying inflation pressures and the potential path for Bank of Japan policy. ECB: ECB Executive Board member Philip Lane is scheduled to speak. Markets will focus on any comments regarding inflation, growth and the ECB’s future rate path following its latest policy assessment. Market conclusion: The US CPI is clearly the main event. A cooler inflation print would favour a weaker dollar, lower Treasury yields and stronger risk appetite, while a hotter number could trigger a reversal in the recent rate-cut optimism. For equity indices, gold and FX, the initial reaction will likely depend heavily on the CPI surprise relative to expectations and how Treasury yields respond. Key Support and Resistance Levels Resistance Level 1: 4,533 Resistance Level 2: 4,622 Resistance Level 3: 4,700 Support Level 1: 4,280 Support Level 2: 4,211 Support Level 3: 4,153 The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. To the extent permitted by law, in no event shall Trade Nation (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk. Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Financial Spread Bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.7% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.