- Annual core-PPI ticks down to 2.7% in July in the U.S.
- DXY reacts negatively to the data but recovers quickly.
The XAU/USD pair spiked up to a daily high at $1217.35 with the initial reaction to macroeconomic data releases from the United States but failed to stretch higher. As of writing, the pair was trading at $1215, adding 0.1% on the day.
The monthly report published by the U.S. Bureau of Labor Statistics revealed that the Producer Price Index stayed unchanged on a monthly basis in July following May's 0.3% growth and dragged the annual rate down to 3.3% from 3.4%. The core version that excludes food, energy, and trade service prices ticked down to 2.7% to fall short of the market expectation of 2.8%. The US Dollar Index fell to 95.15 in the first few minutes after the data release but was able to shake off the bearish pressure. At the moment, the index is up 0.12% on the day at 95.20.
Despite that recent movement the pair continues to fluctuate in its weekly range and struggles to make a decisive move in either direction. Later in the session, Chicago Fed Presiden Charles Evans will be delivering a speech.
Technical outlook
Following Monday's fall, the pair recorded modest recovery gains on Tuesday and Wednesday and is now holding on to small daily gains, helping the CCI indicator on the daily chart continue to pull away from the -100 mark to suggest that the bears are losing strength. The first support could be seen at $1207 (Aug. 8/Aug. 6 low) ahead of $1200 (psychological level) and $1194 (Mar. 10, 2017, low). On the upside, resistances align at $1220 (20-DMA), $1234 (Jul. 25/26 high) and $1249 (50-DMA).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD recovers above 0.6300 as US Dollar retreats
AUD/USD has turned positive and regains 0.6300 in Thursday's Asian session. The US Dollar sees a sharp pullback from three-week highs after US President Trump announced some tariff exemptions on auto part imports, supporting the pair. However, buyers remain caution amid fears of global trade war escalation.
USD/JPY stays pressured toward 150.00, tracks US Dollar pullback
USD/JPY remains directed toward 150.00 in the Asian session on Thursday. The pair keeps the red in tandem with the US Dollar on US President Trump's latest tariff exemption announcement. Further, hawkish BoJ bets and the risk-off impulse also underpin the safe-haven Japanese Yen, aiding the latest leg down
Gold awaits US PCE inflation data for a sustained move higher
The gold price is finding fresh demand above $3,000 early Thursday, following a lacklustre performance on Wednesday. Gold buyers try their luck and aim for the record high of $3,058 once again as they near Friday’s US inflation test.
GameStop's plan to issue $1.3 billion convertible notes to buy Bitcoin could boost crypto market and meme coins
Video game retailer GameStop announced on Wednesday that it plans to issue senior convertible note offerings worth $1.3 billion. The company aims to use part of the proceeds from the offerings to buy Bitcoin.
Sticky UK services inflation shows signs of tax hike impact
There are tentative signs that the forthcoming rise in employer National Insurance is having an impact on service sector inflation, which came in a tad higher than expected in February. It should still fall back in the second quarter, though, keeping the Bank of England on track for three further rate cuts this year.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.