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Gold slips as traders await US CPI that could steer Fed expectations
Spot gold was down 0.3% to $4,376.3 per ounce, after earlier touching $4,434.8, its highest since June 5.
Gold edged lower on Tuesday as investors looked ahead to key US inflation data that could affect expectations for the Federal Reserve's policy path, according to LiveMint Markets citing Reuters. Spot gold fell 0.3% to $4,376.31 per ounce at 1:50 p.m. EDT, after reaching $4,434.84 earlier in the session, its highest since June 5, in an attempt to break above the 100-day moving average near $4,387.92.
The US CPI report is due Wednesday at 08:30 a.m. ET, with producer price data due Thursday, both likely to shape rate expectations after weak July jobs data on Friday led markets to scale back bets of a Fed rate increase next month. Peter Grant, vice president and senior metals strategist at Zaner Metals, said the market is seeking confirmation that inflation is under control, and that moderation in annualized CPI would remain supportive for gold.
Traders were pricing in about a 50% chance of a September hike and a 79% chance in December, based on the CME FedWatch Tool, while Cleveland Fed President Beth Hammack said Monday that she believes the time is right to begin raising rates gradually. LiveMint Markets also noted that a higher rate environment typically reduces the appeal of non-yielding gold.
Among other precious metals, spot silver slipped 1.4% to $64.8 per ounce, platinum fell 0.7% to $1,740.37, and palladium dropped 1.3% to $1,365.60, while oil held near a one-week high. The story also referenced US President Donald Trump’s comments on conditions for a peace deal with Tehran.
Latest closeGold $4,448.60 ▲2.5%|Silver $65.88 ▲4.0%|Platinum $1,764.10 ▲0.8%