Now Reading: Gold slips after two-month peak as traders await US data
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Gold slips after two-month peak as traders await US data
Gold fell 0.5 per cent to $4,383.53 per ounce on Friday, after touching a two-month high of $4,400 earlier in the session. The pullback came as traders locked in profits and turned…
The Story in Brief
Gold fell 0.5 per cent to $4,383.53 per ounce on Friday, after touching a two-month high of $4,400 earlier in the session. The pullback came as traders locked in profits and turned their focus to US producer price data for clues on the Federal Reserve’s next move. The consumer price index rose 3.4 per cent year-on-year in July, cooling from June and reducing bets on a September rate hike to about 40 per cent, according to the CME FedWatch Tool. Markets are also watching geopolitical tensions, with the US threatening to maintain its naval blockade of Iran indefinitely amid stalled ceasefire talks. Silver fell 0.8 per cent to $63.92, while platinum and palladium also declined.
The Indian Opinion
The gold rally is being sold as a sure sign of Fed easing, but the reality is more nuanced. The odds of a September rate hike have fallen, but not vanished, and Cleveland Fed’s Hammack still wants one. Meanwhile, the Strait of Hormuz blockade keeps geopolitical risk alive. Both bulls and bears are cherry-picking facts. The real test will come when the next US jobs report lands: will it push the Fed to act or wait?
Sources (3): thehindubusinessline.com, livemint.com, timesofindia.indiatimes.com
This story was synthesised by AI from the 3 sources linked above.
Updated: this story now draws on 3 sources.
