Gold prices fell by more than $6 during today’s trading, Wednesday, May 10 (2023), despite the decline in the US dollar.
This comes as traders prepare for key inflation data in the US that may determine the Fed’s next monetary policy moves.
Gold prices today
By 07:34 am GMT (10:34 am Mecca time), futures contracts for the yellow metal, for June 2023 delivery, fell by 0.31%, equivalent to $ 6.30, to record $ 2036.60 an ounce.
And gold prices ended their trading yesterday, Tuesday, May 9, with an increase of about $ 10, for the second session in a row.
The spot price of gold also decreased by 0.23%, to reach $ 2029.98 an ounce, according to information monitored by the specialized energy platform.
On the other hand, the price of silver futures contracts – delivery of July 2023 – increased by 0.18%, to $ 25.95 an ounce.
The spot platinum price decreased by 0.04%, to reach $1108.30 an ounce, and the spot palladium price increased by 0.41%, to $1581.77 an ounce.
At the same time, back off dollar index – which monitors the performance of the US currency against 6 major currencies – by 0.07%, at 101.53 points.
US inflation data
US Consumer Price Index data is due at 12:30 PM GMT (03:30 PM Mecca).
Economists who surveyed expect Reuters They view a 5.5% year-on-year rise in core consumer prices for the month of April.
Harish Fiveth, head of research at Geojit Financial Services, said that if inflation in the US remains moderately controlled, it could lead to a temporary pause in the Fed’s rate hikes, which would weaken the dollar and support gold prices.
Markets are currently placing a 79% chance that the US central bank will hold interest rates at their current level in June.
On Tuesday, Federal Reserve Governor Philip Jefferson said the US economy was slowing “in an orderly fashion,” while New York Fed President John Williams said it was too early to say whether the central bank had finished raising interest rates.
Although gold is a hedge against inflation, higher interest rates make non-yielding bullion less attractive.
demand for gold
Harish Fiveth said the weak outlook for the US currency and yields is reigniting gold’s safe-haven status.
He added: “Concerns about the global economy and the outlook for supply and demand may also support the commodity in the near future,” according to Reuters.
Investors are also closely watching developments surrounding the US debt ceiling, after President Joe Biden and top lawmakers agreed on Tuesday to hold further talks with the aim of breaking the deadlock over raising the US debt limit of $31.4 trillion, just 3 weeks before the country is likely to be forced to default on a default. Unprecedented payment.
According to Reuters technical analyst Wang Tao, the spot gold price could be in the range of $2019 to $2024 an ounce.
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2023-05-10 08:00:07
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