Now Reading: Gold heads for weekly loss on profit-taking after inflation data
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Gold heads for weekly loss on profit-taking after inflation data
Gold heads for weekly loss on profit-taking after inflation data
Gold prices slipped on Friday, heading for a weekly loss as investors locked in profits after mild US inflation data pushed bullion to its highest since June 5. Spot gold fell 0.5…
The Story in Brief
Gold prices slipped on Friday, heading for a weekly loss as investors locked in profits after mild US inflation data pushed bullion to its highest since June 5. Spot gold fell 0.5 per cent to $4,326.75 per ounce.
US consumer prices barely rose in July and producer prices were unchanged, reducing expectations of a near-term Fed rate hike to just 35 per cent chance in September. Lower interest rates make gold more attractive. The non-yielding metal had rallied on soft jobs data. On the geopolitical front, Washington threatened to maintain a naval blockade of Iran.
The Indian Opinion
The gold rally narrative often swings between inflation fear and Fed pivot hope, but this week's profit-taking shows markets are not uniformly bullish. A single soft data point does not guarantee a sustained rally, as the gold price remains volatile around $4,300-$4,400 levels. The test will be whether gold can break past $4,400 convincingly. Until then, talk of $5,000 by year-end is premature.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
