One Trader Says This Could Kill Gold’s Vibe

Gold continues to extend its gains and is within striking distance of $1,300 an ounce, but Friday's consumer price index (CPI) read might put a damper on the metal's rally, this according to one trader. ‘The metal has not traded above $1,300 this year and is primed to do so ahead of the weekend. The only thing now standing in the way should be tomorrow morning’s CPI read,’ Bill Baruch, chief market strategist for iitrader.com, told Kitco News on Thursday. The Core CPI measure, which studies consumer prices less volatile changes in food and energy, is seen increasing 0.2% in July. Inflation matters for gold, as it weakens the value of the U.S. dollar, Baruch explained. December gold finished up the session almost 1% higher at $1,290.10 an ounce, marking the highest level for a most-active contract since June 7, when the metal finished at $1,293.20 an ounce. (show less)

Gold continues to extend its gains and is within striking distance of $1,300 an ounce, but Friday's consumer price index (CPI) read might put a damper on the metal's rally, this according to one trader. ‘The metal has not traded above $1,300 this year and is primed to do so ahead of the weekend. The only thing now standing in the way should be tomorrow morning’s CPI read,’ Bill Baruch, chief market strategist for iitrader.com, told Kitco News on Thursday. The Core ... (read more)

 
 
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The Kitco News team speaks to analysts and experts on the frontlines of the market to get the most up-to-date news on the economy. The show offers a well-rounded, timely view on big market moves and any major headlines that may affect financial assets. Coined – no pun intended – as the number one source of precious metals news, Kitco News is the leading provider of up-to-date price action in the precious metals space.

 

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