“I think in the near-term, it’s probably going to…break back below $1,300,” Howard Wen, precious metals analyst at HSBC, said in the article. “We have CPI tomorrow…Normally if CPI data is high that would be a positive for gold but that could be a negative because of the Fed’s linking of inflation and unemployment to monetary policy. The Fed is concerned about a lack of inflation. Ironically, if it’s below expectations, that would be a positive for gold.”
COMEX gold futures traded around $1,305 per ounce Wednesday. Meanwhile, the SPDR Gold Shares (NYSEArca: GLD) was up 1.0% and closed back above its 200-day moving average. GLD is up 7.3% year-to-date. [Ongoing Ukraine Crisis a Boon for Gold ETFs]
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Max Chen contributed to this article. Tom Lydon’s clients own shares of GLD.