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Wednesday, May 22, 2024

Gold price as of now : Gold prices have been relatively stable as investors wait for statistics on inflation in the United States

The price of GOLD failed to gain traction on Wednesday (10 August), as investors refrained from placing large wagers ahead of US inflation data that is anticipated to impact the pace of rate rises by the Fed Reserve.

As of 1.27 am GMT, the spot price of gold was $1,791.60 per ounce, which represented a decrease of 0.1 percent. Gold futures in the United States were trading down by 0.2 percent, at $1,808.20 per ounce.

The annual rate of inflation in the United States is anticipated to have decreased to 8.7 percent in July from 9.1 percent in June, according to a survey conducted by Reuters. It is anticipated that core inflation would be at a rate of 0.5 percent month-on-month. The figures are expected to be ready by 12.30 p.m. GMT.

In an effort to reign in the skyrocketing cost of living, the Federal Reserve raised interest rates by 75 basis points in both June and July. Although gold is considered to be a hedge against inflation, rising interest rates in the United States have made non-yielding metal less appealing to investors.

Fed funds futures traders are now pricing in a 69.5 percent possibility of another rate rise of 75 basis points at the next policy meeting of the United States central bank, which will take place in September.

The dollar index maintained its strength in comparison to its competitors, which reduced the allure of gold for holders of other currencies.

Benchmark The yield on the US 10-year Treasury note increased to 2.7883 percent, bringing the opportunity cost of owning gold, which does not generate interest, to a greater level.

The statistics revealed that wholesale prices in Japan increased 8.6 percent in July compared to the same month a year earlier. The rate of increase slowed from the previous month’s pace, which was an indication that inflationary pressure was reducing as a result of rising fuel and raw material costs.

Spot prices for silver decreased by 0.1 percent to settle at US$20.48 per ounce, while those for platinum and palladium were stable at US$933.59 and US$2,215.29 respectively.

David Faber
David Faber
I am a Business Journalist of The National Era
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