Gold price tumbled on Tuesday, down more than 0.40% following the release of the latest inflation report in the United States (US), which boosted the US Dollar to the detriment of the precious metal. Comments by US President Donald Trump and risk aversion, instead of driving Bullion prices higher, weighed on the precious metal, which trades at $3,329 after hitting a daily peak of $3,366.
The market mood is mixed, with US equities fluctuating between gains and losses following the release of the June Consumer Price Index (CPI). Headline and core figures on an annual basis rose, signaling that tariffs are beginning to push prices higher. Consequently, traders appear to be convinced that the Federal Reserve (Fed) will keep rates unchanged and await further data ahead of the September meeting, following the Jackson Hole Symposium.
Last weekend, the US President Donald Trump announced 30% tariffs on the European Union (EU) and Mexico. Initially, Gold prices rose, but traders faded the move and drove prices lower amid fears that an announcement of an agreement could be made within days or weeks.
Additionally, Trump remains active on social media and revealed a trade agreement with Indonesia. He was also vocal about the latest inflation report and demanded that the Federal Reserve lower interest rates.
Ahead this week, traders will eye inflation on the producer side, Retail Sales, jobs data and the University of Michigan Consumer Sentiment report.
Source: Fxstreet
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