Gold pares August losses awaiting key US inflation data

Gold pares August losses awaiting key US inflation data

Gold steady progress this Thursday, August 31 and is approaching recorded maximums in a month and thus eliminating the accumulated losses throughout this month. This is because a new series of economic data lower-than-expected Americans reinforced the expectation that the Federal Reserve you might have to pause your uploads interest rates.

the price of gold in cash experiences an increase of 0.1%, settling at US$1,944.74 per ounce. This figure was close to its maximum reached on Wednesday, which was US $ 1,948.79, the highest level observed from August 2. In contrast, the gold futures in the United States they decreased by 0.1%, reaching US$1,971.50.

Gold: the data that the market observes and expects

On the economic front, the growth of the US economy in the second quarter was slightly lower than forecast, with a reduction in the increase in private payrolls in august half compared to July. In addition, job offers declined to their lowest level in two and a half years in the past month.

These weaker than expected data led to the belief andn the market that increases in interest rates are likely to occur sooner than the Federal Reserve had hinted. ole hansenfrom Saxo Bank, commented on this: “They have advanced the market belief that we will see maximum rates probably sooner than the Federal Reserve would like us to believe.”

The dollar, For its part, it registered its first monthly rise in three months, and the benchmark 10-year US Treasury yield posted its fourth monthly increase consecutive. As a result, gold, which is priced in dollars, headed down 1% in August.

However, goldbeing an asset that does not generate interest, managed to regain ground in the second half of the month, quickly counteracting the losses accumulated during the first half. This rally was helped by the recent decline in bond yields, which had reached their highest levels since 2007.

As for other precious metals, the silver Spot prices fell 0.4% to US$24.54 per ounce, after hitting a high of more than a month in the previous session. Meanwhile, the platinum presents an increase of 0.1%, reaching u$s974.2, thus registering its second consecutive monthly increase. On the other hand, palladium It shows an improvement of 0.4%, reaching $1,227.22, although it was still on track for a 4% drop over the course of the month.

Source: Ambito

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