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Investing.com – (updated at 15:50 ET)
gold after issuance
Gold succeeded in breaking the $1920 resistance, minutes later, with positive inflation data announcements for gold. Inflation data revealed a new slowdown in key and basic interest rates, contrary to expectations of their stability and acceleration. Core CPI growth fell year on year from 4.8% to 4.7%. Likewise, the main consumer price index grew by 3.2%, while experts expected it to rise by 3.3%, after the rise in oil and natural gas in July.
Spot gold contracts are now recording $1925.16 an ounce, up by 0.53%, while gold futures contracts rose by 0.36%, to $1957.9 an ounce.
The losses of the US dollar index widened to 0.43%, and with it a collective decline in the US Treasury bond yields, as the 10-year Treasury bond yields fell by 0.47 to 3.993%.
Silver futures managed to rise by 0.34% to $22.808 an ounce now.
gold this morning
It hovered near lows at the start of Thursday, while copper prices steadied after heavy losses as markets fell ahead of data in the US due later in the day.
The yellow metal traded at a very low level over the past week, after being pressured by a stronger dollar and higher treasury yields. Declining risk appetite has also pushed traders towards the dollar, as investors are betting that US interest rates will remain high for much longer this year.
Prices now
Spot gold prices moved today, rising by 0.23% to 1919.26 at 10:48 Riyadh time, while gold prices (futures) settled at 1951.5, up by only 0.05%. Both instruments are down about 1.3% so far this week. Until now
The secret behind gold’s strong decline this week
Most of gold’s losses were driven by expectations of a slight uptick in July, remaining flat and well above the Fed’s target range.
Any signs of inflation resilience give the Federal Reserve further impetus to keep interest rates high and tighten policy, which bodes ill for non-yielding assets such as gold.
Expectations of a higher CPI reading also boosted strength, making it a safe-haven favorite against gold. The dollar traded near its highest levels in five weeks, while it traded near its highs in 2023.
Some Fed officials also called for more interest rate hikes earlier this week, citing stubborn inflation. The central bank has said it may raise interest rates at least once more this year.
The bank is also expected to keep interest rates higher for a longer period, reducing the likelihood of any significant gains in gold this year. Higher interest rates raise the opportunity cost of investing in gold and other non-yielding assets.
Other precious metals also incurred heavy losses this week. The price fell by almost 4%, while the price fell by 4.1%.
Copper is under pressure as a result of weak Chinese data
Among the industrial metals, it fell 0.1% to 3.7822 a US troy ounce on Thursday, and traded 2.2% lower for the week.
The red metal was also hit by a series of weak economic readings from China, the largest importer, which showed that the post-Covid recovery worsened in July after a weak second quarter.
China fell into contraction, while both and in the country contracted much more than expected in July. The country’s copper imports also shrank last month.
Weakness in the world’s largest copper importer has heightened concerns about slowing demand for the red metal, especially as economic conditions around the world worsen.
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2023-08-10 12:54:00
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