Market Dynamics: Precious Metals Under Pressure
The trc20 usdt walletprecious metals sector exhibited divergent performance last week, with gold registering a 1.2% decline while silver fell more sharply at 2.1%. This movement followed the release of US July CPI figures that came in below analyst projections, triggering immediate volatility before stabilization around the $1915 level.
Inflation Data Fuels Bearish Sentiment
Thursday's Bureau of Labor Statistics report showed July's year-over-year CPI increase at 3.2%, marginally higher than June's 3% but falling short of the anticipated 3.3% consensus. Core CPI registered at 4.7% annually, marking the lowest reading since October 2021. Housing costs remained the primary inflation driver, partially offset by declining airfare and used vehicle prices.
Positioning Data Reveals Growing Pessimism
CFTC commitment of traders reports from August 2-8 demonstrate significant shifts in speculative positioning. Gold futures saw long positions reduced by 21,939 contracts to 142,985, while short positions increased by 11,800 during the same period. This aggressive short covering suggests traders are positioning for extended downside.
Technical Outlook Points Lower
From a chart perspective, several concerning signals emerge. The 60-day moving average maintains its downward slope while the 14-day RSI sits at 37, below the neutral 60 threshold. The MACD indicator shows a bearish crossover with both lines below zero and the histogram expanding downward, confirming negative momentum.
Key technical levels to watch include resistance at $1930 and support at $1905. Market participants should monitor upcoming economic releases including retail sales figures and housing data for potential catalysts that could alter the current trajectory.
Analyst Perspective
Current market conditions suggest gold may continue facing headwinds in the near term. The combination of technical weakness, shifting speculative positioning, and moderating inflation pressures creates an environment where further downside testing appears probable. Traders should remain alert to potential volatility around key economic data releases in the coming sessions.
