GCAP GoldPrivate▲ Positive
Monetaryrelevance
GCAP Gold recommends buying dips, citing supportive CPI data and geopolitical risks
GCAP GOLD says gold still supported by slowing US CPI, recommends buying on dips
MacroCommodity
GCAP GOLD sees gold still supported after US July CPI slowed as expected, with headline CPI easing from 3.5% to 3.4% and core CPI from 2.6% to 2.5%, prompting markets to cut the odds of a Fed rate hike in September to around 40%. Meanwhile, the Strait of Hormuz situation remains unresolved, with Brent crude still trading near 89 dollars per barrel and WTI above 83 dollars per barrel, keeping energy and inflation risks a key variable for markets. Gold responded by climbing above 4,400 dollars and testing its highest level in more than two months. GCAP GOLD assesses that gold remains in a short-term uptrend and recommends a strategy of waiting to buy on dips, with short-term support seen at 4,350 to 4,320 dollars, or around 67,900 to 67,500 baht for Thai gold prices, and profit targets around 4,450 to 4,500 dollars, or about 69,500 to 70,200 baht. However, if prices break below 4,300 dollars, or 67,000 baht for Thai gold, buying should be delayed.
GCAP Gold recommends buying dips, citing supportive CPI data and geopolitical risks