Gold Pauses After Tame US Inflation Fuels Rally to over Two-Month Peak
Investors took profits as softer U.S. inflation data cut September rate-hike odds to 31%, according to CME FedWatch.
- On Friday, gold steadied after pulling back from a more than two-month high, with spot gold little changed at $4,351.45 an ounce by 1113 GMT following a 1.3% decline in the previous session.
- Softer U.S. inflation data and fading expectations for a Federal Reserve rate hike fueled a recent rally that pushed bullion to its highest point since June 5 on Thursday.
- Traders now price only a 31% chance of a Federal Reserve rate hike in September, down from about 44% a week earlier, according to the CME FedWatch Tool; December gold futures fell 0.3% to $4,407.70 per ounce.
- Physical gold discounts in India widened to two-month highs as rising prices curbed consumption, while interest in China remained muted. Han Tan, chief market analyst at Bybit, noted markets are "indulging in some profit-taking" following bullion's mid-week spike.
- The coming week's Federal Open Market Committee meeting minutes may trigger fresh volatility for spot gold, while Washington threatened a naval blockade on Iran, reviving supply concerns.
15 Articles
15 Articles
Gold futures prices closed higher, supported by demand from central banks and the prospect of stable monetary policy from the Federal Reserve (Fed), as recent economic data from the United States reinforced bets on maintaining interest rates at current levels. On Comex, the metals division of the New York Mercantile Exchange (Nymex), gold for October delivery advanced 0.37%, to US$ 4,403.7 per troy ounce. For the week, prices rose 0.88%. "We ma…
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Gold steadies near two-month high as inflation rally fades and Fed hike odds fall
Gold prices steadied on Friday after pulling back from a more than two-month high, as investors booked profits following a rally fuelled by softer U.S. inflation data and fading expectations for a Federal Reserve rate hike in September.Spot gold was little changed at $4,351.45 an ounce by 1113 GMT after the contract fell 1.3% in the previous session. U.S. gold futures for December delivery fell 0.3% to $4,407.70 per ounce.Bullion rallied to it…
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