Gold: an overview of the market situation

Gold futures rose moderately today, offsetting more than half of yesterday's fall, which was associated with the release of better than expected U.S. data on producer price index.

U.S. Labor Department reported that the producer price index for final demand rose by a seasonally adjusted 0.4% in June compared with the previous month. It was more than 0.2% increase on the forecast of economists, and a 0.2% decline in May.

In June, producer prices rose by 1.9% compared with a year ago, slightly less than 2% of the annual increase tion in May and increase in April by 2.1%. The rise in prices in June was led by a 2.1 percent increase in energy prices. Gasoline prices rose by 6.4% at the beginning of the summer driving season, while accommodation and airline passenger traffic has also increased. Food prices fell 0.2%, showing a decline for the second month in a row after a sharp rise earlier this year.

Investors will also pay attention to today's speech of Fed Janet Yellen before the Financial Services Committee of the House of Representatives. In general, she repeated her speech yesterday, saying that the U.S. economic recovery is not yet complete, despite a marked improvement in recent years, and a high degree of accommodation of monetary policy is still needed. As an example, Yellen noted the continuing weakness of the labor market. She made ​​it clear that, if the situation on the labor market will stabilize sooner than expected, and that the rate increase may occur earlier than planned FOMC. However, as she believes that rates will remain low for a long time after the completion of QE. Fed chief expressed concerns about the recovery of the housing market, which has recently slowed.

"Despite the fact that the Fed's Yellen position has conservation soft policy, gold markets interpreted her words about the possibility of an early increase in interest rates as a negative for gold," - analysts said HSBC.

Apparently, in the coming days the price of gold price dynamics will be limited to the level of support $ 1290.0 per ounce and resistance level $ 1310.0 per ounce, experts say.

The cost of the August gold futures on the COMEX today rose to $ 1303.20 per ounce.