3 weeks ago

Gold climbs to nine-week high ahead of US inflation data

Gold climbs to nine-week high ahead of US inflation data
Gold climbs to nine-week high on buying momentum as inflation data looms · livemint.com

Gold is a shiny metal that people buy to keep their money safe.

Lately, more and more people want to buy gold, so its price is going up.

On Monday, gold reached its highest price in about two months, a nine-week high.

One reason is that China's central bank, the big bank that helps run the country's money, bought a lot of gold in July.

Another reason is that people think inflation, or the rising cost of everyday things, is slowing down in the United States.

The US government will soon release new reports about inflation, and investors are waiting to see them.

If inflation is cooling, the Federal Reserve might not raise interest rates as much, which makes gold more attractive.

Traders currently think there is a 52% chance of a rate hike in September.

Many investors are buying now because they don't want to miss out if the price keeps climbing.

Key facts

Spot gold price
$4,376.56 per ounce, up 0.8%
Gold futures
$4,419.70, up about 0.5%
Price milestone
Highest level since June 5 (nine-week peak)
China central bank purchases
Largest monthly gold addition to reserves since October 2023
US CPI report
Due Wednesday; July CPI expected at 3.4% year-on-year vs 3.5% in June
US PPI report
Due Thursday
Rate hike odds
52% for September, 81% for December (CME FedWatch Tool)
Other metals
Silver +3.1% to $65.50; platinum +0.1% to $1,746.50; palladium +0.2% to $1,380.17

Quotes

Bob Haberkorn

Senior market strategist at StoneX

“The technical momentum right now is pretty strong for gold overall. It's cautious trading, with China buying, and the July CPI and PPI report this week, and kind of a fear of missing out on a move back over 4,500 for the time being.”
livemint.com
“The CPI data is going to be important. Inflation is starting to cool a little bit, with markets expecting a report that's not going to be hot on inflation, and will lead to gold trading sideways to higher in the near term.”
livemint.com

Sources

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