Gold strengthened on Wednesday (July 16th) on a weaker dollar, while investors awaited further clarity on trade talks between the US and its trading partners, with fresh inflation data due to provide further direction on the US Federal Reserve's policy outlook.
Spot gold rose 0.6% to $3,341.29 per ounce, as of 09:10 GMT. US gold futures edged up 0.3% to $3,348.20. The US dollar (.DXY), opens a new tab, fell 0.1%, making gold cheaper for buyers holding other currencies.
"The dollar is currently weakening ahead of the US PPI data as traders are taking a cautious stance after the recent uptick, which has given gold a bit of a boost," said Ross Norman, an independent analyst. On the data front, US consumer prices saw their highest increase in five months in June amid rising costs for some goods, signaling rising inflation and a possible delay in the Fed's planned interest rate cut until September.
The spotlight now turns to US producer price index (PPI) data, due at 12:30 GMT. On the trade front, President Donald Trump said on Tuesday that the US would impose a 19% tariff on goods from Indonesia under a new agreement with the Southeast Asian nation and that more agreements would be reached soon, while also providing new details on planned tariffs on pharmaceutical products.
The agreement with Indonesia is one of the few agreements reached so far by the Trump administration ahead of the August 1 deadline when tariffs on most US imports will rise again. However, the gold market has repeatedly rejected the $3,400 level despite Trump's new tariff updates, said Ajay Kedia, director of Mumbai-based Kedia Commodities.
Gold, traditionally considered a hedge against economic and political uncertainty, thrives in low interest rates. "In the short term, gold prices are likely to consolidate before continuing their rally towards $3,600/oz by year-end," ANZ said in a note. Elsewhere, spot silver rose 0.8% to $38.01 per oz. Platinum rose 0.4% to $1,377.85, while palladium fell 0.8% to $1,196.14. (alg)
Source: Reuters
Gold trimmed losses after US inflation and labor market data strengthened bets that the Federal Reserve will cut interest rates next week. Consumer prices excluding food and energy rose 3.1% last mont...
Gold weakened slightly on Thursday (September 11), but held near record highs well above $3,600, as a modest dollar recovery and profit-taking weighed on prices, while investors awaited US consumer in...
Gold held steady just below its record, around $3,645/oz, after an unexpected decline in US producer prices (PPI) fueled hopes of Fed policy easing. The market now awaits the release of US CPI data Th...
Gold price surges on Wednesday, up by over 0.60%, folllowing US inflation data, which increased speculation that the Federal Reserve (Fed) will resume its easing cycle at the upcoming September meetin...
Gold surged near a record high of $3,650 an ounce on Wednesday (September 10) after an unexpected decline in US producer prices reinforced expectations that the Federal Reserve will continue cutting i...
US stocks were in the green on Thursday, with the S&P 500 adding 0.3% to hit new highs, while the Nasdaq was up 0.3% and the Dow Jones rose almost 200 points as investors digested the latest US CPI report. The data came largely in line with...
Gold trimmed losses after US inflation and labor market data strengthened bets that the Federal Reserve will cut interest rates next week. Consumer prices excluding food and energy rose 3.1% last month from a year earlier, in line with analysts'...
Oil prices fell on Thursday (September 11), pressured by concerns over weakening US demand and a widespread oversupply, offsetting the threat to production from conflicts in the Middle East and Russia's war in Ukraine. Brent crude futures fell 86...
The United States (US) Bureau of Labor Statistics (BLS) will publish the 2025 preliminary benchmark revision to the Establishment Survey Data on...
The Federal Reserve is likely to start a series of interest-rate cuts next week and keep going through the end of the year, traders bet on Wednesday...
Producer inflation in the United States, as measured by the change in the Producer Price Index (PPI), fell to 2.6% annually in August from 3.3% in...
The US Bureau of Labor Statistics reported on Tuesday that the preliminary estimate of the Current Employment Statistics (CES) national benchmark...