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Gold stays near the $4,000 level as the dollar weakens

Spot gold trades below its short term moving average, while US June PPI came in lower than expected at 5.5% year over year.

Reported · Written up by our desk · Major Pairs

FXStreet said spot gold, tracked as XAU/USD, is neutral to bearish and hovering dangerously close to the $4,000 level as the US dollar faces selling pressure.

The outlet pointed to a softer inflation signal from the US Producer Price Index, with June PPI rising 5.5% year over year versus 6.6% expected, and down 0.3% on the month.

FXStreet also linked USD weakness to remarks from Federal Reserve Chair Kevin Warsh, who told Congress that current price pressures will not be permanent but that inflation readings remain unsatisfactory.

Technically, the piece said gold is sitting below the 100 period and 200 period simple moving averages on the four hour and daily charts, while remaining above the 20 period level, suggesting consolidation with easing downside pressure but no clear reversal yet.

Latest closeGold $4,058.20 ▲1.5%

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