Gold prices rose slightly on Monday after experiencing the biggest drop in three and a half years in the previous session. This increase occurred against the background of disappointing data from China and the United States, which did not meet investors ' expectations.This is reported by Reuters, reports UNN.
Gold was up 0.5% to.2,304. 92 an ounce as of 12:00 GMT. At the same time, US gold futures fell 0.1% to.2,323. 20.
Bullion lost about п'ятниці 83 last Friday, falling 3.5% in its biggest one-day decline since November 2020 after the release of the U.S. jobs report, which beat forecasts and lowered expectations for interest rate cuts in September. News that China's central bank is suspending gold purchases has also prompted investors to step back from betting on demand in China.
The people's Bank of China (NSC) has never been a regular buyer. There were separate purchase phases, followed by multi-month breaks. But until the NBK resumes buying, gold prices may trade sideways, as China's buying theme is a key market focus.Given that we made this crucial sentimental move on Friday, I would be very surprised if we get a flash of volatility of the same size again this week, unless there is a major surprise from the CPI or the Fed, but that seems unlikely
The market is focusing on the upcoming U.S. consumer inflation report, which is due to be released on Wednesday, the same day the Federal Reserve makes a decision on its monetary policy.
The Fed is not expected to make any policy changes this week, so the focus will be on Fed Chairman Jerome Powell's comments and updated economic forecasts. The chances of a rate cut in September dropped to 49% from 70% after the latest employment report.
According to UBS, the Fed is expected to raise its forecasts for possible rate cuts in 2024 to two out of three, but the September decline remains the baseline scenario, despite the need to reduce inflation. Meanwhile, spot silver prices rose 2.1% to.29.77 an ounce, platinum rose 0.1% to. 964.73, and palladium rose 0.7% to. 918.55.
Recall
gold smuggling from Africa has increased rapidly over the past decade, with most of the illegally exported precious metal exported to the UAE.