Investing.com – Updated at 18:18 EST
Gold prices turned lower during the past few moments, affected by the US inflation data released a while ago.
It is now declining by 0.15% to $1884 per ounce.
It fell by 0.12% to $1872 per ounce.
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Gold lost some of its morning gains with the release of US inflation data, which revealed that inflation indicators remained at high levels without any significant slowdown.
Gold prices now after inflation data
The spot gold contract is now trading at $1878.9 per ounce, up 0.24%, and it is reported that spot gold contracts reached $1885 before the data.
As for gold futures contracts, they also gave up some of their gains, and gold prices (Futures) are now rising to $1892.25 per ounce, an increase of 0.26%. It is noteworthy that the price of futures contracts reached $1897 before the data was released.
Why did gold lose some of its profits?
These data confirm some of the concerns of Fed members that inflation will not continue to decline sufficiently, and although the rate is calm and has not moved significantly, many expectations believe that these levels may push the Fed to raise interest rates further before the end of 2023.
Inflation data
Inflation data revealed an increase in the main consumer price index, as the main consumer price index recorded on an annual basis for the month of September 3.7%, and expectations indicated that it would rise by only 3.6%, after recording 3.7% last August.
On a monthly basis, the main inflation measure rose by 0.4% in September, and expectations were at 0.3%, after rising by 0.6% in August data.
While the core consumer price index (excluding food and energy) recorded on an annual basis 4.1% in September, which is in line with expectations, after recording 4.3% in August, and on a monthly basis it recorded 0.3% in September according to expectations, after recording an increase of 0.3% in August.
Gold movement in the morning before inflation data
Gold prices recorded their highest levels in two weeks and are close to exceeding the level of $1,900 an ounce, today, Thursday, in conjunction with the faltering of the dollar and Treasury bond yields before the eagerly awaited US inflation report, which may shed some light on the Federal Reserve’s upcoming directions regarding interest rates.
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Gold and the dollar now
It rose 0.4% to $1,895 an ounce.
It rose by 0.41% to $1882 per ounce.
On the other hand, it declined by 0.22% to 105.337 points.
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Gold at settlement yesterday
Gold prices turned higher at the settlement of trading yesterday, Wednesday, with US 10-year bond yields declining to touch their lowest levels in two weeks, amid investors’ evaluation of economic data from the United States to anticipate the path of monetary policy.
Upon settlement, gold futures for December delivery rose by 0.65%, or $12, to reach $1,887.3 per ounce, the highest settlement since last September 27.
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Gold’s gains will remain limited
The dollar index and yields were near two-week lows, making interest-bearing gold more attractive.
Growing uncertainty about the path of the U.S. economy pushed policymakers into a newly dovish stance last month, minutes of the Fed’s September meeting showed, a stance reaffirmed by senior Fed officials in a series of statements this week.
Federal Reserve policymakers agreed last month that monetary policy should remain “restrained” for some time in order to continue to cool inflation.
“We are almost at the end of rate hikes, and there will likely be a final 25 basis point hike, which will not have a major impact on the market because that is largely expected,” said Brian Lane, managing director at GoldSilver Central. .
“But one thing is certain, people expect interest rates to continue to rise… and this will limit the rise in the price of precious metals (broadly),” Lan added.
Higher interest rates raise the opportunity cost of holding non-yielding bullion, which remains more than 9% down from near record levels set in May. While investors still see a 26% chance of a rate hike at the Fed’s December meeting.
CPI data, which is expected to show inflation moderated last month, is due later in the day and comes after data on Wednesday showed that US producer prices rose more than expected in September, but underlying inflation pressures continued to ease.
Official data showed that the producer price index in the United States rose by 0.5% during September on a monthly basis, while it was expected to rise by 0.3%, but it is considered a slowdown from the 0.7% increase in August.
other metals
Spot rose 0.4% to $22.15 an ounce, platinum rose 0.8% to $891.84, and rose 0.7% to $1,175.29.
2023-10-12 13:10:00
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