The price of gold increased earlier this week after the latest inflation data reinforced expectations of the Fed reducing rates of interest. Spot gold saw its price hit $3,347.34 per ounce, representing a .1% increase.
The U.S. dollar index slipped 0.3% while Treasury yields edged lower as investors positioned for potential policy easing. The greenback saw its value decrease, which made bullion cheaper for holders of other currencies. U.S. gold futures for December delivery saw the price drop to $3,399 per ounce, which equates to a 0.2% decline.
The Consumer Price Index (CPI) increased by 0.2% in July after recording a .3% increment the previous month. Data shows that over the past year, the CPI rose by 2.7%.
A survey completed by economists projected that the CPI would increase by 0.2% last month and rise by 2.8% year-on-year. Bob Haberkorn, a market strategist at RJO Futures, notes that while inflation data looks mixed but still leans in favor of interest rate reductions. He adds that market participants are still wary as they wait for additional economic signals.
Traders maintain their wagers on U.S. interest rate reductions in September and December following the recently released CPI report. Other reports expected this week include retail sales, weekly unemployment claims, and the U.S. Producer Price Index.
In other news, China and America have agreed to a 90-day truce on tariffs, averting triple-digit levies on each other’s products. Razan Hilal, a FOREX.com market analyst, explains that prices continue to trade within a set range between crucial support and resistance levels as investors absorb the latest tariff news.
Low rates of interest usually bolster the appeal of gold, as the precious metal yields no interest. Gold is also known to perform well in times of uncertainty due to its status as a safe haven asset and a good hedge against inflation.
Prices of the precious metal declined by over 2% after President Trump posted that he wouldn’t levy duties on imported bullion. The social media post came after a recently released report alluded to Washington levying tariffs on 1kg bullion bar imports, which had sent the metal’s price to record highs.
With regard to the performance of other metals, spot silver saw its price rise to $37.92 per ounce. This represents a 0.9% increase. Palladium also saw its price decline to $1,129.57, which equates to a 0.5% drop. On the other hand, platinum’s price stabilized at $1,338.73, a 0.9% increase.
For now, gold traders are assured that no tariffs will be imposed on bullion. This helps to keep things steady within the market, and enterprises like GEMXX Corp. (OTC: GEMZ) will carry on their operations without having to worry about supply chains being upended by the trade war.
NOTE TO INVESTORS: The latest news and updates relating to GEMXX Corp. (OTC: GEMZ) are available in the company’s newsroom at https://ibn.fm/GEMZ
About MiningNewsWire
MiningNewsWire (“MNW”) is a specialized communications platform with a focus on developments and opportunities in the Global Mining and Resources sectors. It is one of 70+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, MNW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, MNW brings its clients unparalleled recognition and brand awareness.
MNW is where breaking news, insightful content and actionable information converge.
To receive SMS alerts from MiningNewsWire, text “BigHole” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.MiningNewsWire.com
Please see full terms of use and disclaimers on the MiningNewsWire website applicable to all content provided by MNW, wherever published or re-published: https://www.MiningNewsWire.com/Disclaimer
MiningNewsWire
Los Angeles, CA
www.MiningNewsWire.com
310.299.1717 Office
Editor@MiningNewsWire.com
MiningNewsWire is powered by IBN
