Gold prices rebounded to $1234 from $1230 following the softer-than-expected US consumer price index report.
Gold prices have been mostly stuck in a range from $1210-$1260 for the past month. The market is reluctant to make a strong move until the Fed makes a clear signal on tapering. That’s something we could get as soon as tomorrow.
Gold daily
A taper and hawkish message would send prices below $1210 and could kick off a fresh leg lower. The gold industry will come under heavy pressure if prices fall below $1080 and production shutdowns could support prices there.
When the Fed surprised markets by not tapering on Sept 18, gold prices surged to $1373 from $1303. The market was more-convinced of a taper at that meeting so the reaction is likely to be smaller.
