We had a relatively busy 5 days in the economic calendar this past week. The PCE which remains a benchmark for the Feds indicated that inflation rose 0.1% m/m in August and 2.2% y/y. Both readings were slightly below economists expectations. The core PCE index, which excludes food and energy, also rose by 0.1% for the month and 2.7% year-over-year, which was more in line with forecasts​. Yes, I am sure not many of us are seeing lower grocery prices in the stores and it almost appears like prices of essentials are flat to higher m/m. Despite WTI being handsomely under $70 the prices at the pump for refined gasoline does not appear to be moving lower fast enough. These inflation readings support the theory that the FOMC, which for the first time in quite a while had a dissenting member in Ms. Bowman, could cut rates again by the end of the year, as inflation remains close to their 2% target. The monthly jobs data is due next Friday with earlier in the week delivering PMIs and continued Fed speeches.

Gold prices fell on Friday and the pullback is owed largely to the big move higher in the Yen spurred by a change in guard at the leadership level n Japan. Meanwhile the conflict between Israel and the Lebanese group Hezbollah escalated last week, with targeted Israeli airstrikes in Lebanon further throwing water on the risk appetite for investors. This pullback however appears timely from a technical perspective and gears us up for a retest of the 2700-price level this week. We draw from our simple TA and list out a set of participation guidelines whether you with to trade Gold futures or try your luck with the short dated options markets:

Potential participation range: 2656~2674.2

Direction: Long biased [BUY]

Risk Management: Stop at or below 2643.5 which means Potential loss for trading 1 contract with entry at mid-point of participation [2665.2]: -$2,170

Target: 2721.1 which means Potential gains if held into the stated target: +$5590

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