Technical Analysis:
GOLD gave us a MSS to the down side on 1H and 4H time frame, Price might try to reach towards 2470-2475 zone again and see resistance from these areas. We can start looking for confirmations to sell from these areas,
Fundamentals:
Gold prices retreated from a day-prior record high by mid-afternoon on Wednesday as Treasury yields moved up after U.S. inflation rose less than expected last month, firming expectations the Federal Reserve will begin lowering interest rates next month.
Gold for December delivery was last seen down US$26.90 to US$2,480.90, falling off from Tuesday's record closing of US$2,507.80 per ounce.
The U.S. Bureau of Labor Statistics reported the July Consumer Price Index (CPI) fell to a 2.9% annualized pace from 3.0% in June and the consensus estimate for a 3.0% rise, according to Marketwatch. Core CPI, which excludes volatile food and energy, ran at a 3.2% pace last month, matching the consensus estimate and down from 3.3% in June.
The data follows on Tuesday's release of the July Producer Price Index (PPI) which also showed a lower than expected rise, firming market hopes the Federal Reserve will begin to cut interest rates at the September 18 meeting of its policy committee. Lower interest rates are bullish for gold, lowering the carrying cost of owning the precious metal.
The dollar steadied, with the ICE dollar index last seen up 0.1 points to 102.58.
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