Gold prices whipsawed in tandem with the Euro, rising up in early trade but settling nearly unchanged on the session after testing resistance near the 50-day moving average at 1,290. Support is seen near the 10-day moving average at 1,278. This follows a U.S. inflation report that was inline with expectations. Momentum is neutral as the MACD (moving average convergence divergence) histogram print near the zero index level with a flat trajectory which reflects consolidation.
U.S. CPI was Stable
U.S. CPI edged up 0.1% in October with the core rate up 0.2%, exactly as forecast, and follow respective gains of 0.5% and 0.1% in September. The annual pace slowed to 2.0% year over year from 2.2% year over year, with the ex-food and energy component rising to a 1.8% year over year clip versus 1.7% year over year. The internals were mixed. Energy prices declined 1.0% versus the 6.1% jump previously. Transportation was down 0.5% from 2.8%.