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Gold Signal - US Inflation - 16 Aug 2016

Signal details
Entry Price: 
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Expiry Time: 
20:00 GMT
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Gold prices have trended higher today albeit have since given up most of the gains after some comments from Federal Reserve's official Bill Dudley. He said that the U.S. central bank stands ready to act and that the Fed's meeting in September could be one at which the policymakers decide to hike rates for the first time this year.

As a result we have seen a sharp drop in the price of gold from above $1357 down towards $1347, where the price is currently trading. We don't view the decline as terribly shocking considering the volatility in gold lately and the fundamental factor is not enough to arrest the rally in gold for now, because Bill Dudley is one of the more hawkish members of the Fed who advocates higher rates (which are negative for gold).

We would be buying daily calls at current levels around $1347.

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.