Gold Prices Plummet Below $1,900 as Uptrend Breakout Sparks Selling Pressure

As assets that are seen as riskier lose value, the market is becoming less predictable. This can be seen from the S&P 500 futures that have been dropping, representing investors’ preference for lower-risk products. Market participants have become more risk-averse, driving demand for US government bonds lower. As a result, 10-year US Treasury yields have risen above 3.54%.

Investors will keep an eye on the US Producer Price Index (December) and monthly retail sales (December) data in the near future. It is vital information to analyze to make wise decisions when investing.

According to analysts, the December producer price index (PPI) is expected to be 6.8%, while the core PPI could decrease to 5.9%. In addition, retail sales data for the month might have grown by 0.1% as opposed to the 0.6% reported previously. A surge in retail sales could increase inflation outlooks, which would benefit the economy.

On the other hand, breaching $1,920.50 could restart the bullish trend. According to today’s trading forecast, the anticipated range for trading should be between 1885 and 1928, with the former marking support and the latter resistance.

The expected trend for today: Bearish