Weekly Market Analysis: CPI results confuse markets

The latest Consumer Price Index (CPI) data from the US, which stood at 0.2% for July, has left markets in a state of uncertainty. While this figure aligned with initial estimations, it has still managed to trigger fluctuations in market confidence over the past week.

The concerns stemming from China, as discussed in our previous update, have only added to the market unease. The combination of China's low CPI numbers and a slowing economy has contributed to heightened volatility in global stock markets.

Adding to the complexity, jobless claims for the same period have surpassed expectations, reaching 248,000 compared to the projected 231,000. This unexpected rise in jobless claims raises questions about the robustness of the economy and the potential impact on the pace of interest rate hikes.

In the midst of these developments, the performance of precious metals like Gold and Silver has also been lacklustre. Both metals have experienced a period of decline in their prices, with Silver even breaking through its crucial 200-day moving average (200MDA) support line. As we move into the upcoming week, all eyes will be on whether these metals can establish new support levels and emerge from this slump.

Additionally, the spotlight will be on the Oil market in the coming days, as it approaches a key psychological resistance level of around $87 per barrel. Should Oil manage to break through this barrier or weaken, the resulting pressure would have a ripple effect on the performance of Gold and Silver, potentially influencing their trajectories in the market.

Here’s today’s charts and market forecast below.

Gold daily chart, with 200MDA

Silver daily chart, with 200MDA

Gold Futures Technical Analysis

Gold Futures monthly analysis continues to recommend a STRONG BUY with Weekly analysis of a NEUTRAL signal.

Technical indicators - Monthly Projections

Summary for Monthly Forecast: Strong Buy

Disclaimer

This news and any links provided are for general information only and should not be taken as constituting professional advice from Jaggards. Jaggards is not a financial adviser. We recommend you seek independent financial advice before making any financial decisions based on the information contained in this article.