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Gold rates hold ahead of American inflation report
(MENAFN) On Monday, gold prices showed a cautious demeanor as investors anticipated critical US inflation data that could substantially impact the Federal Reserve's monetary policy.
By 0352 GMT, spot gold prices had dipped by 0.13 percent, trading at USD2,427.86 per ounce, within a narrow trading range of USD10. Meanwhile, United States gold futures experienced a 0.3 percent decline, settling at USD2,466.40 per ounce.
Ilya Spivak, head of global macro at Tastylive, indicated that market participants are expected to remain cautious in advance of the impending United States Consumer Price Index (CPI) report, scheduled for release on Wednesday. The CPI report is projected to show a 0.2 percent month-on-month increase in both headline and core inflation rates.
IG market strategist Yeap Jun Rong noted that if the CPI data reflects continued inflationary pressures, it could drive gold prices toward retesting their historical highs. This potential upward movement is supported by current market expectations, which show a 54 percent probability of a 50 basis point interest rate cut at the Federal Reserve's September meeting. Gold typically performs well in low-interest-rate environments.
Fed Governor Michelle Bowman, known for her traditionally hawkish views, moderated her stance on Saturday by acknowledging some “welcome” progress on inflation. However, she stressed that inflation remains “uncomfortably above” the Federal Reserve’s 2 percent target.
In other precious metals markets, spot silver fell by 0.3 percent to USD27.36 per ounce, platinum decreased by 0.47 percent to USD917.83, and palladium dropped by 0.2 percent to USD903.48.
By 0352 GMT, spot gold prices had dipped by 0.13 percent, trading at USD2,427.86 per ounce, within a narrow trading range of USD10. Meanwhile, United States gold futures experienced a 0.3 percent decline, settling at USD2,466.40 per ounce.
Ilya Spivak, head of global macro at Tastylive, indicated that market participants are expected to remain cautious in advance of the impending United States Consumer Price Index (CPI) report, scheduled for release on Wednesday. The CPI report is projected to show a 0.2 percent month-on-month increase in both headline and core inflation rates.
IG market strategist Yeap Jun Rong noted that if the CPI data reflects continued inflationary pressures, it could drive gold prices toward retesting their historical highs. This potential upward movement is supported by current market expectations, which show a 54 percent probability of a 50 basis point interest rate cut at the Federal Reserve's September meeting. Gold typically performs well in low-interest-rate environments.
Fed Governor Michelle Bowman, known for her traditionally hawkish views, moderated her stance on Saturday by acknowledging some “welcome” progress on inflation. However, she stressed that inflation remains “uncomfortably above” the Federal Reserve’s 2 percent target.
In other precious metals markets, spot silver fell by 0.3 percent to USD27.36 per ounce, platinum decreased by 0.47 percent to USD917.83, and palladium dropped by 0.2 percent to USD903.48.
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