Gold Holds Steady Amid Inflation Watch

12 Aug 2024 , 09:50 AM

As investors await the release of important U.S. inflation statistics later this week to determine the extent of the Federal Reserve’s anticipated interest rate decrease next month, gold prices remained stable on Monday.

Spot gold was slightly up at $2,425.94 an ounce. The price of US gold futures fell 0.3% to $2,464.80.

Tuesday is the deadline for the U.S. producer price index (PPI), and on Wednesday is the consumer price index (CPI).

The CME FedWatch Tool indicates that the market currently estimates a 54% chance of a 50 basis point decrease in September. The allure of non-yielding metal usually shines when interest rates are low.

On Saturday, Fed Governor Michelle Bowman moderated her often aggressive stance, praising more “welcome” advancements in inflation while maintaining that it is still “uncomfortably above” the central bank’s 2% target.

Owing to a price correction, physical gold demand grew somewhat in India last week, although some buyers postponed purchases owing to market instability, and premiums increased in China as a result of safe-haven purchases.

In other news, the militant Palestinian group Hamas questioned its participation in a conference scheduled for this Thursday by asking mediators to submit a proposal based on past discussions rather than starting over with fresh talks for a ceasefire agreement in Gaza.

Spot silver dropped 0.6% to $27.29 an ounce, palladium was essentially flat at $905.00, while platinum increased by 0.1% to $923.20.

For feedback and suggestions, write to us at [e-mail]