Gold Prices: Shoring Up Ahead Of US Inflation Data

Gold rose and the US Dollar fell ahead of the US consumer data report coming out Wednesday. Some market watchers believe the rise in gold prices is due to short covering ahead of the news.

Others think it’s a straightforward example of the dollar dropping due to inflation (or expected inflation), so gold rose because of a fundamental relationship with the dollar. And still others think it’s just another step in the so-called race to the bottom, wherein the country whose currency is weakest gains advantages in international trading, and paying off their deficit. Whatever the reason, gold easily stayed above the 1300 psychological level, and is back around 1325 this morning.

We expect quiet trading until the US consumer data report comes out tomorrow, then we might get a better idea of which direction gold is heading next. We’d have to pick this article from the Hindustan Times as the article of the day, as it covers more ground.

 Related: Learn Why Bitcoin Will Never Replace Gold


About the author

Mike Hammer

Mike Hammer has had a wide-ranging career, with trading and investing as a continuing theme. Mike graduated from UC Berkeley with a business degree, then worked with Macy's in their operations arm. He left Macy's and spent a summer trading his own account, which taught him a lot about trading in general and markets in particular. Trading through the Black Monday and the Crash of 1987 showed him how most people are unprepared for upheavals in their trading. He then joined Waddell & Reed as a financial advisor, helping regular people understand their finances and meet their life goals.

Then came the usual story - Mike met and married the lady of his dreams. They moved to upstate New York, where Mike worked first for a small manufacturing consulting company, then Cornell University. While loving the work and the higher-education atmosphere, Mike missed the world of finance. Eventually, he signed up for stock trading coaching with the Adam Mesh Trading Group, to learn from people who understood modern markets. Within a year, Adam asked Mike to become a stock trading coach.

Since then, Mike has trained over 200 individuals, spoke at several national conventions, and is a frequent contributor to conference calls across the Adam Mesh community. Mike writes The Gold Enthusiast daily newsletter, runs the Golden Hammer trading service, and participates in the Mesh Private Portfolio. He also keeps a position in international education which keep him in touch with "the student mindset". Mike closely follows the gold, energy, and financial sectors. His motto is "Plan your trade, then trade your plan!"

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