Gold prices continued to drop significantly this morning, with spot gold falling $13.4 to $1,943 and August futures trading at $1,956, down $14 from the previous day. This decline is due to reevaluation of rate expectations after the Fed's decision last week.
The latest inflation report shows a mixed outlook for the US. While the CPI index has dropped to a low of 4% compared to last year, the core CPI data that the Fed focuses on, which excludes energy and volatile food prices, decreased to 5.3%, slightly higher than expected.
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A surprise rate hike has the potential to trigger an aggressive selloff towards levels not touched since mid-March at $1,900.
In the meantime, prices remain trapped within a range with support at $1,935 and resistance at $1,983.
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⭐️Make a trading plan: ✅Sell the $1,955-$1,953 range when the price hits the resistance area. ✖️Stoploss: $1,960.
AND ALWAYS REMEMBER WHAT YOU NEED TO DO IS MANAGE RISK. GOOD LUCK !!!