Solid Gold Berjangka | Gold Steadies Ahead of Expected Cooling in Core US Inflation
Gold steadied ahead of key US inflation figures, which are expected to give a clearer indication of the Federal Reserve’s next interest rate moves.
Core inflation is expected to fall, extending a downward trend that Bloomberg Economics believes will support a pause in monetary tightening when the Fed next meets in September. Both higher Treasury yields and steeper rates are typically negative for bullion, which doesn’t yield interest.
The precious metal is still trading around the lowest in a month, with recent strength in the dollar weighing on prices. Gold has also been pressured by a flood of US government-debt issuance that pushed Treasury yields higher earlier this week, though investors seem to be absorbing the extra supply.
Spot gold edged 0.1% higher to $1,915.86 an ounce at 8:24 a.m. in Singapore, but was down more than 1% this week. The Bloomberg Dollar Spot Index was flat. Silver edged higher, palladium was steady, and platinum slipped.
Source: Bloomberg
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