Gold traded higher yesterday but, price remains inside a range, for now. A bear threat is present and the sell-off on Jun 7 reinforced a short-term bearish theme. Price has pierced the 50-day EMA, at 2320.8. A clear break of this EMA would confirm a resumption of the reversal from May 20 and open $2277.4, the May 3 low. Clearance of this price point would also strengthen a bearish theme. Initial firm resistance is $2387.8, the Jun 7 high.
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Swiss CPI is due for release at 7:30BST / 8:30CET. Headline inflation is expected to have remain steady on a Y/Y basis in May after April's pronounced uptick, with consensus standing at +1.4% Y/Y and +0.3% M/M (vs +1.4% and 0.3% in April, respectively). Core CPI is expected to have accelerated further, however - consensus stands at +1.3% Y/Y (vs +1.2% Apr).
BTP futures traded sharply lower last week and in the process cleared support at 116.94, the May 15 low. The move down strengthens a bearish threat and a continuation would open 115.76, the Apr 25 low and a bear trigger. Clearance of this level would highlight an important technical break. On the upside, initial resistance is at 117.57, the 50-day EMA. Firmer resistance is seen at 119.00, the May 16 high.