Gold price today: World gold drops to the lowest level in 4 week

The world gold price continued to decline with spot gold down 11.2 USD to 1,918.2 USD/ounce. Gold futures in December last traded at $1,950.6 per ounce, down $9.3 from dawn the day before.

Gold fell to a four-week low in early morning trade as other economic reports from China showed weaker consumer and commodity demand.

Specifically, the latest data showed that China's consumer prices fell for the first time since February 2021. Accordingly, the consumer price index (CPI) in July decreased by 0.3% compared to the same period last year. Meanwhile, the producer price index (PPI) fell for the 10th consecutive month, down 4.4% year-on-year and June's decline was 5.4%.

The latest data from China raised concerns that the world's second-largest economy's demand for gold will continue to decline in the near-term.

Comment:

Following this development, long-term US government bond yields fell, making non-yielding precious metals like gold more attractive. The dollar index, which measures the strength of the greenback against a basket of major currencies, also fell 0.2%, away from the highs recorded in the previous session.

Comment:

The gold market continues to face difficulties when the US Federal Reserve (FED) is still maintaining the monetary tightening cycle, keeping investors out of the market until the Fed has a more definitive answer on the issue. interest rate direction.

Comment:

CPI recorded a 3.0% increase in the June report. Meanwhile, the US weekly jobless claims report was slightly higher than expected. Although both reports are tilted in favor of the US Federal Reserve (Fed) will ease monetary policy, but it does not seem to be enough to reverse the trend for gold.