Gold rises slightly on expectations of US inflation data and a possible corrective move in the Arab trader

Arabictrader.com – Gold prices rose slightly during trading on Wednesday to settle near July’s peak, amid investor caution as markets await the release of key US inflation data. later in the day, after yesterday’s surprising price inflation data.

Producer price index inflation in July was lower than expected, and it rose today with the decline seen in the dollar yesterday, as it is now trading near the h -its lowest levels since inflation data was released on August 5.

The decline of the dollar provided an opportunity for gold, denominated in US currency, to rise as the cost was kept down for investors who held money other than US currency.

US Treasury bond yields also fell to their lowest levels in a week, with 10-year bonds now trading at 3.85%, after lower-than-expected US producer price index data .

Traders are now focusing on the US price index and retail sales data for further signs of the Fed’s policy direction.

The decline in the US dollar and yields came against a backdrop of rising market hopes for a possible cut in interest rates by the Federal Reserve at its next meeting in September.

Gold now

In trade, gold spot contract prices rose 0.17% to $2,470.10 an ounce, while December delivery settled at $2,508.30 an ounce.

Estimation of gold price movements

Despite the modest increase seen in gold prices today, they may decline in a possible technical correction following gold futures contracts for August delivery on the COMEX exchange. settle at a higher level at night.

Analysts at Commerzbank expect that gold could reach a new level, as inflation data could provide an additional boost for the prices of the yellow metal in today’s trade.

Capital Markets Analyst Kyle Rodda said spot gold prices could fall to $2,300 an ounce if US CPI data doesn’t match the expected cuts in interest rates.

But he said he expected gold to rise again in the longer term amid growing signs of weakness in the US economy and a slowdown in the labor market enough to prompt the Federal Reserve to incentive to cut rates significantly.

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