Gold Prices Slip as Dollar Strengthens Ahead of Key U.S. Inflation Report
As the world's top investment manager and financial market journalist, I bring you the latest update on gold prices. Gold slipped by 0.4% to $2,514.11 per ounce, while U.S. gold futures were down 0.2% to $2,549.00. The dollar's rise by 0.1% has diminished gold's attractiveness for foreign currency holders.
Kelvin Wong, OANDA's senior market analyst for Asia Pacific, mentioned that the market is waiting for a catalyst to push gold above the $2,532 level. The short-term trend for gold remains strong, with potential for new highs. However, in the longer term, resistance may be faced around the $2,585 to $2,595 range.
Market participants are eagerly awaiting the release of the U.S. personal consumption expenditure (PCE) data, which is the Federal Reserve's preferred measure of inflation, on Friday. Traders have already priced in a Fed easing for next month, with a 67% chance of a 25-basis-point cut and a 33% chance of a bigger 50-bp reduction, according to the CME FedWatch tool.
Gold tends to perform well in a low-interest-rate environment, and with Fed Chair Jerome Powell endorsing imminent rate cuts, gold may see further gains. In other news, China's net gold imports via Hong Kong in July rose by about 17% from the previous month, the first gain since March.
Spot silver slipped by 0.7% to $29.78 per ounce, platinum rose by 0.3% to $956.00, and palladium fell by 0.4% to $966.40.
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