Global gold prices continued to fall, with spot gold dropping $11.2 to $1,913.2 an ounce. December gold futures traded at $1,950.6 an ounce, down $9.3 from the early hours of the previous day.
Gold fell to a four-week low in early-morning trading after other economic reports from China showed weak consumer and commodity demand. Specifically, China's consumer prices fell for the first time since February 2021, according to the latest data. As a result, the consumer price index (CPI) in July fell by 0.3% from the same period last year. Meanwhile, the Producer Price Index (PPI) fell 4.4% year-on-year, marking the 10th straight month of decline and a drop of 5.4% in June. The latest data from China have raised concerns that short-term gold demand in the world's second-largest economy will continue to decline.
Gold still struggles to attract the attention of bulls, but Willem Middelkop, founder and chief investment officer of the Commodity Discovery Fund, said gold is still in good standing as a currency. . impact of a weaker dollar.
The market strategist said recent bond market volatility, with 10-year yields hovering around 4%, was a strong sign that investors were losing confidence in the dollar.
Gold fell to a four-week low in early-morning trading after other economic reports from China showed weak consumer and commodity demand. Specifically, China's consumer prices fell for the first time since February 2021, according to the latest data. As a result, the consumer price index (CPI) in July fell by 0.3% from the same period last year. Meanwhile, the Producer Price Index (PPI) fell 4.4% year-on-year, marking the 10th straight month of decline and a drop of 5.4% in June. The latest data from China have raised concerns that short-term gold demand in the world's second-largest economy will continue to decline.
Gold still struggles to attract the attention of bulls, but Willem Middelkop, founder and chief investment officer of the Commodity Discovery Fund, said gold is still in good standing as a currency. . impact of a weaker dollar.
The market strategist said recent bond market volatility, with 10-year yields hovering around 4%, was a strong sign that investors were losing confidence in the dollar.
Comment:
Commerzbank forecasts gold will trade around $2,000 an ounce by year-end, with prices averaging around $2,050 an ounce in the first quarter of 2024. Gold will surpass all-time highs as the Fed rolls out cuts interest rates by the middle of next year.
