Gold remains stagnant in early trade

16 Aug 2023 , 09:55 AM

A day after breaking through the crucial $1,900 support level due to robust U.S. consumer expenditure figures that fueled speculation that the Federal Reserve was not yet through raising interest rates, gold prices were unchanged on Wednesday.

Spot gold was unchanged at $1,900.90 per ounce, while U.S. gold futures fell 0.1% to $1,933 per ounce.

As benchmark 10-year U.S. Treasury yields touched an almost 10-month high on Tuesday, making them more appealing than non-interest-bearing metal, gold fell to a low of $1,895.50 an ounce, its lowest level since end-June.

Retail sales in the United States rose more than anticipated in July, showing that the economy kept growing early in the third quarter while avoiding a recession.

Investors will review the minutes from the Fed’s July policy meeting later in the day to determine its impending rate plan.

Neel Kashkari, president of the Minneapolis Fed, stated on Tuesday that although the U.S. central bank has made some success against inflation, more rises in interest rates may be required to complete the task.

Even after 14 consecutive rate increases, the growth rate of basic salaries in Britain reached a record high, raising concerns for the Bank of England about long-term inflation pressures.

Global hedge funds are ‘aggressively’ selling Chinese stocks due to growing worries about the country’s real estate market and some bad economic statistics, according to a Goldman Sachs research.

The holdings of SPDR Gold Trust, the largest gold-backed exchange-traded fund in the world, continued to fall on Tuesday and reached 894.43 metric tons, its lowest level since January 2020.

Platinum fell 0.1% to $887.81 while spot silver increased by 0.1% to $22.52 per ounce. Up 0.2% to $1,237.40, palladium.

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