3 weeks ago

Gold edges lower as markets await key US inflation data

Gold edges lower as markets await key US inflation data
Gold edges lower as markets await key US inflation data · livemint.com

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

This week its price slipped just a little, but only after reaching its highest level in more than two months.

People who trade gold are waiting for new numbers from the United States about how fast prices for everyday things are rising - something called inflation.

These numbers help everyone guess what the Federal Reserve, the country's central bank, will do next.

If the Fed raises interest rates, borrowing money becomes more expensive and gold becomes less attractive to buyers.

Last week, fewer people got jobs than expected, and that news made gold jump about 2.4% in a single day.

Now, traders think there is about a 50% chance the Fed will raise rates in September and about a 79% chance by December.

Cleveland Fed President Beth Hammack says raising rates a little at a time is a good idea to avoid bigger increases later.

President Donald Trump also asked Iran to pay money to help people hurt or killed in wars, attacks and protests.

Key facts

Spot gold price
$4,376.31 per ounce, down 0.3%
Session high (two-month peak)
$4,434.84 per ounce, highest since June 5
U.S. gold futures settlement
$4,441.10, up about 0.5%
Gold's 100-day moving average
$4,387.92
September Fed rate hike probability
About 50%, per CME FedWatch Tool
December Fed rate hike probability
About 79%, per CME FedWatch Tool
Upcoming U.S. data
CPI on Wednesday; producer price data on Thursday
Oil prices
Held near a one-week high

Quotes

Peter Grant

vice president and senior metals strategist at Zaner Metals

“"The market is looking ahead to this week's inflation data for some kind of confirmation that inflation is in check,"”
livemint.com

Sources

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