Gold Prices May Fall Further After Breaking 1-Month Range Floor

GOLD CRUDE OIL TALKING POINTS:

  • Gold prices plunge as US Dollar gains on Italy turmoil, Fed outlook
  • Crude oil prices remain stuck at chart resistance below $73/barrel
  • US PCE inflation data, EIA monthly output report now focus ahead

Gold prices tumbled as a spirited recovery in the US Dollar undercut the appeal of anti-fiat alternatives. The greenback managed to capitalize on its haven and yield appeal on the same day, initially rising against the backdrop of political turmoil in Italy and continuing higher alongside front-end Treasury yields as markets continued to on-board the outcome of the FOMC monetary policy announcement.

A dollop of rosy US economic reports probably helped as well. A final revision of second-quarter GDP data confirmed the annualized growth rate at an impressive 4.2 percent, the core PCE inflation gauge topped forecasts to print at 2.1 percent, and durable goods orders unexpectedly posted the largest increase in six months at 4.5 percent.

Crude oil prices were little-changed absent an asset-specific catalyst. A bit of strength early in the session was undone by the Dollar’s advance however, which applied

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