Gold prices slumped in late trading Wednesday (Thursday morning WIB), recording losses for the third straight session to settle at their lowest level in nearly two weeks, as investors await the release of the US consumer price inflation report for July.
The most-active gold contract for December delivery on the Comex division of the New York Exchange shed another $9.30, or 0.47 percent, to close at $1,950.60 an ounce, after touching a session high of $1,966.10 and a low of 1,948. 80 US dollars.
Gold futures slipped USD 10.10, or 0.51 percent, to USD 1,959.90 on Tuesday (8/8/2023), after falling USD 6.10, or 0.31 percent, to USD 1,970.00 on Monday ( 7/8/2023), and rose US$7.30, or 0.37 percent, to US$1,976.10 on Friday (4/8/2023).
The US consumer price index for July will be released on Thursday local time and the producer price index will be released on Friday (11/8/2023). Both numbers can provide some insight into whether the Federal Reserve will raise interest rates again in September.
Economists surveyed by the Wall Street Journal expected consumer prices to rise 0.2 percent in July, the equivalent of a 0.2 percent increase in June. The June data came later than economists had expected, fueling hopes that the Fed could end its interest rate hike campaign sooner.
“Tomorrow brings the latest US inflation data, which will serve as an important reference point for the Federal Reserve when the committee meets next month to decide whether to continue raising interest rates or if inflation has now decreased enough for the US central bank to leave rates unchanged,” Rupert said. Rowling, market analyst at Kinesis money, in email comments quoted by Market Watch.
Gold is also under pressure as China reported a 0.3 percent fall in consumer prices in July, according to a report released by the National Bureau of Statistics on Wednesday (9/8/2023). It was the first decline in two years, raising the specter of deflation and further complicating China’s post-COVID-19 recovery.
Gold prices have fallen over the past week as the US dollar and global bond yields, especially government bond yields, have increased. The US dollar index fell less than 0.1 percent to 102.47, but remains up 0.4 percent so far this week.
The yield on the 10-year US Treasury fell modestly by 1 basis point to 4.01 percent, while the yield on the 2-year Treasury bond dropped 6 basis points to 4.80 percent.
Another precious metal, silver for September delivery slipped 7.60 cents, or 0.33 percent, to close at 22.731 dollars per ounce. Platinum for October delivery shed $11.50, or 1.27 percent, to settle at $892.70 an ounce.
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