Gold price today : The downtrend shows no sign of ending
The price of gold on the global market remained stable as spot gold dropped to $1,915.2 per ounce. Meanwhile, December gold futures were last traded at $1,948.9 per ounce, experiencing a decrease of $1.70 from the previous day.
Recently released cable newspapers have revealed that inflation in the United States is gradually declining while there are signs of weakness in the job market. Specifically, July's Consumer Price Index (CPI) saw a 3.2% increase compared to the same period last year, slightly lower than experts' forecasted rate of 3.3%.
The June report showed a 3% increase in CPI. Additionally, there was a slight overperformance in the US weekly jobless claims report relative to expectations. Although both reports lean towards supporting potential monetary policy easing by the US Federal Reserve (Fed), it does not appear sufficient to reverse the trend for gold.
Amidst this data release and with continued strength in USD value against other currencies, there has been limited support provided for this precious metal's demand among buyers who hold alternative currencies as investments.The US Dollar Index rose by 0.13% to reach 102.63 points early this morning further diminishing gold's appeal compared to other assets available for purchase.
Recently released cable newspapers have revealed that inflation in the United States is gradually declining while there are signs of weakness in the job market. Specifically, July's Consumer Price Index (CPI) saw a 3.2% increase compared to the same period last year, slightly lower than experts' forecasted rate of 3.3%.
The June report showed a 3% increase in CPI. Additionally, there was a slight overperformance in the US weekly jobless claims report relative to expectations. Although both reports lean towards supporting potential monetary policy easing by the US Federal Reserve (Fed), it does not appear sufficient to reverse the trend for gold.
Amidst this data release and with continued strength in USD value against other currencies, there has been limited support provided for this precious metal's demand among buyers who hold alternative currencies as investments.The US Dollar Index rose by 0.13% to reach 102.63 points early this morning further diminishing gold's appeal compared to other assets available for purchase.
Comment:
“With CPI continuing to taper off, that suggests there is less room for the Fed to keep raising rates, especially at the September meeting.”
Comment:
The Federal Reserve cannot afford to cut interest rates as soon as core inflation remains above its 2% target.
Comment:
Because the market has just witnessed the consumer price index (CPI) of July and producer prices (PPI) of China both decrease over the same period. This is a signal of deflationary pressure as demand in the world's second-largest economy weakens. Economic weakness, gold will have the opportunity to go up.
Comment:
Over the past week, gold has been on a downward trend with the price down 1% in the context of inflationary pressure on the US economy. Currently, gold market participants are still divided on whether the final rate hikes of the US Federal Reserve (Fed) will have more hikes.
