Gold is decreasing, will it return to 1900?
The closing price of spot gold in the global market today stood at $1,916.8 per ounce.
On the Comex New York exchange, December delivery gold futures experienced a slight decline of $1.7, representing a 0.09% decrease to $1,948.9 per ounce.
Gold prices remained relatively stable due to the recent release of the US consumer price index report which indicated a year-on-year increase of 3.2%. Although slightly below expectations for a 3.3% gain, this marks an improvement from June and is the first rise in over a year.
Despite these positive factors, gold's upward momentum was limited by the significant rally in the US dollar index from its early session lows and minor increases in US Treasury yields.
Furthermore, alongside July's modest inflation uptick in America came news that weekly jobless claims exceeded expectations by a small margin. These statistics suggest that there will be no interest rate hike during September's Federal Reserve meeting.
On the Comex New York exchange, December delivery gold futures experienced a slight decline of $1.7, representing a 0.09% decrease to $1,948.9 per ounce.
Gold prices remained relatively stable due to the recent release of the US consumer price index report which indicated a year-on-year increase of 3.2%. Although slightly below expectations for a 3.3% gain, this marks an improvement from June and is the first rise in over a year.
Despite these positive factors, gold's upward momentum was limited by the significant rally in the US dollar index from its early session lows and minor increases in US Treasury yields.
Furthermore, alongside July's modest inflation uptick in America came news that weekly jobless claims exceeded expectations by a small margin. These statistics suggest that there will be no interest rate hike during September's Federal Reserve 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.
