Gold Price Forecast - Double-Top May Hold Further Upside For Now

8.9.22 - Inflation Reduction Act to Double IRS Audits

Gold last traded at $1,794 an ounce. Silver at $20.49 an ounce.

NEWS SUMMARY: Precious metal prices rose Tuesday ahead of inflation data and a weaker dollar. U.S. stocks fell after after another chipmaker warned about tough times ahead.

Daily FX--"Gold starts the week pretty much unchanged from Friday's closing levels with the precious metal changing hands around $1,775/oz...The closely watched UST2/10s yield spread is currently quoted around minus 40 basis points, a strong clue from the fixed income market that a recession is on the way in the US, whatever definition is used.

On Wednesday, the latest look at US inflation will be released for the month of July. Core inflation, y/y, is expected to nudge 0.2% higher to 6.1%, while headline inflation is seen 0.4% lower at 8.7%, according to market estimates.

The recent uptick in gold cannot disguise that the precious metal still remains in a downtrend off the March 2022 high. The series of lower highs and lower lows remain in place, while in the short-term the $1,795/oz. double top will be tough to break pre-US inflation. Short-term support is seen at $1,763/oz. and $1,753/oz."