Gold showed a minor sell-off due to profit booking. It hit a low of $2643 yesterday and is currently trading around $2653.
The Fed's preferred inflation gauge, PCE, cooled to 2.2%, down from 2.5% in July. Excluding food and energy, core PCE declined to 0.10% m/m, compared to a forecast of 0.20%.
The policy easing by major central banks such as the Fed, SNB, BOC, and ECB supports the yellow metal at lower levels.
According to the CME Fed watch tool, the probability of a 50 bpbs rate cut in Nov decreased to 46.2% from 53% a week ago.
Technical (4 hour chart)-
The yellow metal trades above short-term (34 and 55 EMA ) and long-term (200- EMA) in the 4- hour chart.
The near–term support is around $2640, a break below targets $2624/$2610/$2600/$2570/$2560/$2545/$2520/$2470. Major bearish continuation only below $2470.The yellow metal faces minor resistance around $2670 and a breach above will take it to the next level of $2689/$2700.
Indicator (4- hour chart)
CCI (50)- Bearish
Average directional movement Index - Neutral
It is good to sell on rallies around $2661-62 with SL around $2675 for TP of $2624/$2600.
