US Markets Set to Reopen

Gold prices traded mostly flat during yesterday's session, closing at $1071.93 an ounce and looking to have formed a short-term base near the $1070 - $1065 region. However, the emerging consolidation seen here has formed into a potential triangle pattern which could see a breakout accompanied by strong momentum and volume over the near-term. A break below $1065 lows could see gold prices quickly drop to the $1050 psychological level while a break to the upside could see a retest of $1080 at the very least. The commodity markets on the whole remain weak as the US Federal Reserve is expected to hike rates this December after keeping monetary policy at near zero interest rates for over 5 years. WTI crude oil futures were also weak despite thin trading yesterday as the commodity closed yesterday’s session at $42.46 following three consecutive days of gains.

The Japanese Yen is trading stronger in today's early Asian trading session, rising 0.17% against the US Dollar. Consumer inflation data from Japan, released earlier today showed the National Consumer price index rise 0.30% on a year-on-year basis, above the median estimates of 0.20% and up from last month's flat reading. On the core CPI, prices rose a modest 0.70% for the month, down from 0.90% price rise from a month ago and coming out below estimates of 0.80%. The Japanese unemployment rate data also released today showed a strong improvement from 3.40% rate of unemployment to 3.10%. With the ongoing weakness in consumer prices, Japanese Premier Shinzo Abe called for an increase in social spending and for the minimum wage to be increased in a bid to stoke inflation.