3 weeks ago
Gold climbs to nine-week high ahead of US inflation data
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.
Spot gold rose 0.8% to $4,376.56 per ounce on Monday, reaching its highest level since June 5.
China's central bank stepped up gold purchases in July, adding the most bullion to its reserves since October 2023.
Investors are awaiting US consumer price data due Wednesday and producer price data due Thursday.
Traders are pricing in a 52% chance of a rate hike in September and an 81% chance in December, according to the CME FedWatch Tool.
Spot silver rose 3.1% to $65.50 per ounce, while platinum and palladium also posted gains.
- Who
- Gold investors and traders, China's central bank, and US policymakers tracking inflation data
- What
- Gold rose to a nine-week high on bullish momentum and expectations of cooling US inflation
- Where
- Global commodity markets, with key US inflation data reports upcoming
- When
- Monday, August 10
- Why
- Strong technical momentum, China's increased gold purchases, and expectations that upcoming US inflation data will be soft
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









