Gold prices rise ahead of US inflation data release
Kyiv • UNN
Gold prices are moderately rising after a fall, as investors await US inflation data. The spot price of gold rose by 0.1% to $3348.41 per ounce.
After a significant drop the day before, gold prices showed a moderate increase on Tuesday. Investors are awaiting key US inflation statistics, which could determine the Federal Reserve's next steps in cutting interest rates. This is reported by Reuters, writes UNN.
Details
Tuesday morning brought a moderate increase in gold quotes on world markets. As of 06:38 GMT, the spot price rose by 0.1% and amounted to $3,348.41 per ounce. Meanwhile, US December gold futures fell by 0.2% to $3,397.10 per ounce.
The day before, the market experienced a sharp decline: the price of gold fell by 1.6%, and futures by more than 2%. The reason was a comment by US President Donald Trump about the absence of plans to impose tariffs on imported gold bars, which cooled the previous excitement.
Experts note that currently, investors' attention is focused on a possible Fed rate cut in September.
If the CPI data turns out to be even slightly lower than forecasts, it will only strengthen confidence in a rate cut
In his opinion, such a scenario would reduce the cost of holding gold, and consistently low yields on 10-year US Treasury bonds would provide additional support for the precious metals market.
Calculations by economists surveyed by Reuters indicate that the core consumer price index in July likely rose by 0.3%, bringing the annual figure to 3%. This is above the Fed's target of 2%. According to the CME FedWatch tool, the probability of a September rate cut is currently estimated by traders at 85%.
In parallel, silver rose by 0.7% to $37.89 per ounce, platinum rose by 0.4% to $1,331.50, and palladium added 0.8% to $1,145.03.