June 5, 2023

Taylor Daily Press

Complete News World

Marked ingots of 99.99 percent pure gold are placed in a cart at the Krastsvetmet non-ferrous metals plant in Krasnoyarsk

Gold moderates spotlight on US inflation data

Spot gold was at $1,714.41 an ounce at 0524 GMT.

US gold futures were down 0.2% at $1,725.00.

“There continues to be some general easing of downward pressure on gold, but this week’s inflation numbers may provide some relief,” said Clifford Bennett, chief economist at ACY Securities.

“Another sign that inflation may have peaked will encourage the gold market. The Fed will continue to hike anyway, but after the recent sharp decline, a decision may be enough to push gold back up.”

US consumer price index data expected on Tuesday showed prices were expected to increase 8.1% in August against an 8.5% print for July. [USCPNY=ECI]

Fed officials have their public comment period on Friday ahead of the Fed’s Sept. 20-21 policy meeting. It ended with strong calls for another exorbitant rate hike to combat skyrocketing inflation.

Markets are widely expecting the central bank to raise interest rates by 75 basis points this month.

Higher interest rates increase the opportunity cost of holding a non-yielding precious metal and boost the dollar, including the price of gold.

The dollar index hit its lowest level since August 30 on Friday. [USD/]

Meanwhile, policymakers at the European Central Bank see the risk of having to raise their key interest rate to 2%, sources told Reuters.

According to Reuters technical analyst Wang Tao, spot gold will break the resistance at $1,720 and rise to $1,729.

Spot silver rose 0.7% to $18.91 an ounce.

Platinum fell 0.6% to $875.49 and palladium fell 0.5% to $2,161.17.