Gold prices fell more than 11 dollars, during trading today, Thursday, 11 August, with the rise in dollar prices and US Treasury yields.
The drop in precious metal prices came from its highest levels in more than a month, with US Federal Reserve officials indicating that there is an intention to raise interest rates, despite signs of declining inflation in the world’s largest economy.
Gold prices today
By 08:19 AM GMT (11:19 AM Mecca Al Mukarramah), the price of gold futures – for December delivery – decreased by 0.62%, equivalent to $11.20 to record the level of $1802.50 an ounce.
she was gold prices Yesterday, Wednesday, it ended its trading on a higher note, after announcing the slowdown in the inflation rate in the United States.
Prompt delivery price dropped for yellow metal By 0.32%, to $1,786.66 an ounce.
At the same time, the price of futures contracts fell for silver – September delivery – by 1.50%, at $ 20.43 an ounce, according to data seen by the specialized energy platform.
On the other hand, the price of platinum The spot price increased by 1.45%, to record $ 958.24 an ounce, and the price of Palladium spot 0.24%, at $2,251.06 an ounce.
gold market situation
“We could see a dip in gold prices in the short term towards $1,780,” said ED&F Man analyst Edward Meir.
rebound US Treasury yields the 10-year benchmark to 2.7910%, after falling to 2.6740%, on Wednesday; This increases the opportunity cost of holding gold without interest.
The Dollar Index also regained some ground, trading 0.1% higher at 105.280, after falling to its lowest level since June 29th at 104.630 on Wednesday.
inflation data
Data showed that US consumer prices did not rise in July due to the sharp drop in the cost of gasoline; This raised hopes that the Federal Reserve would be less aggressive about its tightening plans going forward.
However, Fed policymakers have indicated that they will continue to tighten monetary policy until price pressures are completely broken.
Minneapolis Federal Reserve President Neil Kashkari said he still believes the US central bank will need to raise its policy rate to 3.9% by the end of the year and to 4.4% by the end of 2023 to fight inflation.
Chicago Federal Reserve Chairman Charles Evans has remained hawkish on financial markets, predicting US interest rates will rise to 4% next year.
Fed officials said they still need to raise interest rates, which are bearish for gold.
interest rates
Gold is very sensitive to rising US interest rates; It increases the opportunity cost of holding non-yielding bullion, while boosting the dollar in which it is priced.
On the technical front, spot gold may test the $1767-$1773 support area, and a break below could open the way towards $1,756, according to an analyst. Reuters Artistic Wang Tao.
For its part, SPDR Gold Trust, the world’s largest gold-backed ETF, said its holdings fell 0.17% to 997.42 tons on Wednesday from 999.16 tons on Tuesday.
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