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USAGOLD/Peter Grant/07-21-17
Gold has extended to the upside, slightly exceeding the important 1248.08/1250.13 resistance zone as the dollar continues to slide. A more definitive breach of this resistance area would return considerable credence to the underlying uptrend.
The dollar index has fallen to 13-month lows amid a growing certainty that a September rate hike is off the table, and rising doubts about December. The EUR-USD jumped to a 23-month high. That’s probably not what the ECB was expecting when they maintained their über-accommodative policy stance yesterday. Apparently they weren’t dovish enough . . .
As there is no U.S. data out today, I’ll take a moment to report Canadian CPI, which fell 0.1% in June. The annualized pace of consumer inflation slowed to 1.0%, versus 1.3% y/y in May. It seems our friends to the north are dealing with similar issues: a central bank that is raising interest rates into price weakness.
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