Gold declines before U.S. inflation figures
Gold prices declined after reaching a high not seen in more than two months, as markets waited for U.S. inflation data that will determine the path of interest rate hikes. The spot price of gold fell by 0.16% to $4,383.22 per ounce, after earlier reaching $4,435.33, while futures contracts rose to $4,442.84. The market anticipates U.S. inflation to slow to 3.4% annually, supporting increased gold prices as investors await upcoming consumer and producer price data. Expectations are that the Federal Reserve may raise interest rates by 25 basis points in September, with the possibility of additional hikes. Meanwhile, U.S. Treasury yields are decreasing, reducing the cost of holding gold as an investment tool. Geopolitical risks remain, with escalating tensions between the United States and Iran contributing to market instability.
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