This Monday, gold experiences a rise and heads towards its session most promising in almost two weekswhile the dollar retreated pending the publication this week of crucial data on inflation in the US. These data could influence the decision made by the Federal Reserve about the interest rates at the end of this month.
In the market, gold spot registers an increase of 0.4%, reaching US$1,924.60 the ounce. Simultaneously, US gold futures advanced 0.3%, reaching US$1,949.20.
A weak dollar contributed significantly to gold gains, according to Xiao Fu, an analyst at the Bank of China International. Furthermore, he highlighted that “concerns about a German recession and the economic slowdown in Europe will undoubtedly have a supporting factor, since gold It is perceived as a refuge safe in times of uncertainty”.
Gold: the data observed by the market
The European Comission predicts slower-than-expected economic growth in the euro zone this year, especially since Germanyits main economic engine, is entering a recession.
On the other hand, the dollar index fell 0.4% awaiting data from inflation of the United States scheduled for Wednesday. This fall resulted in a lowering of the price of gold for buyers using other currencies.
The publication of these data inflation could lead traders to reevaluate their bets on whether the Federal Reserve has room to continue increasing interest rates. Currently, CME’s FedWatch tool shows a 42% chance of an increase before 2024.
Looking ahead to the next scheduled Fed meeting for September 19 and 20 This month, Fed officials have expressed their reluctance to raise rates interest ratesalthough few have declared a definitive victory in this aspect.
As for other precious metals, the silver registers an increase of 1%, reaching $23.14 per ounce, marking its first rise since August 29. Platinum also advances 0.9%reaching $900.43, after experiencing its biggest weekly drop since November 2021 last week. For its part, palladium gains 0.7%, reaching $1,206.16.
Source: Ambito
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