© Reuters.
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Investing.com – In a rare outlook, gold and the dollar appear to agree on the downside, as limited moves trending to the downside dominate safe haven trading during Tuesday’s trading.
This comes just hours before the inflation data awaits the markets, which will kick off a decision in the coming days.
prospective data
The Department of Labor’s August report is scheduled for Tuesday. Economists expect headline inflation to rise to 8.1%, down from 8.5% in July.
The Fed uses CPI as its preferred inflation measure, so any signs of a rate drop could encourage the US central bank to take a softer stance on rate hikes at its September meeting.
Experts believe that inflation expectations in the market remain in check and this allows the Federal Reserve to gradually raise interest rates and reduces the risk of it crushing economic growth or causing high unemployment rates.
gold now
The US dollar fell during trading today, Tuesday, within two dollars, to levels close to $ 1720 an ounce.
On the other hand, futures contracts on the yellow metal fell in these trading moments today, Tuesday, in the range of $ 7 an ounce, or 0.35%, to levels close to $ 1733 an ounce.
Gold prices rose to their highest level in two weeks at the end of trading on Monday, supported by falling US dollar and Treasury yields, and the metal benefited from the decline in the US currency.
December delivery rose 0.7%, or $ 12, to reach $ 1,740.60 an ounce, while spot prices rose 0.3% to levels close to $ 1,724 an ounce.
dollar now
The dollar is still down for the fifth consecutive day, despite statements fueling fears of the continued tightening of the US Federal Reserve, which increases the chances of the dollar rising.
Subsequent statements by Federal Reserve officials were released indicating the need to continue monetary tightening to control the acceleration of inflation amid expectations of a 75 basis point interest rate hike this month.
US Treasury Secretary Janet Yellen said the Fed would need a lot of skills and even some luck to control inflation without dragging the economy into a recession.
It is currently trading near the 3-week low, as it dropped to levels near 108 points, abandoning the 20-year high when it broke above 110.6 points last week.
The dollar index is now down 0.25% to 108.1 point levels, while on Tuesday it recorded its lowest level, below 108 points levels, when it previously dropped to 107 levels. 96 points.
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