GOLD rose 1% after US inflation data
Updated
Gold prices increased 1% on Friday (July 26), as US Government bond yields fell due to optimism that the US Federal Reserve (Fed) will lower interest rates in September, after data showed that inflation in the US increased slightly in June.
At the end of the trading session on July 26, the spot gold contract increased 1% to 2,388.05 USD/oz, after hitting the lowest level since July 9, 2024 on July 25. Gold futures contracts added 1.2% to 2,381 USD/oz.
US economic data was mixed to weaker today, showing inflationary pressures and weakening economic activity, paving the way for the Fed to lower interest rates twice this year.
Fed policymakers on July 26 got fresh evidence of progress in the fight against inflation, raising expectations that they will use next week's meeting to signal a rate cut. Rates start in September.
Lower interest rates reduce the opportunity cost of holding non-yielding metals.
The US Department of Commerce's Bureau of Economic Analysis said the personal consumption expenditures (PCE) price index in the US in June inched up 0.1% compared to the previous month, after remaining unchanged in May.
After the inflation data, the 10-year US Government bond yield fell to its lowest level in a week.
Meanwhile, physical demand in India, the world's second largest consumer, received a boost when the country reduced import taxes on precious metals earlier this week. Gold prices in India also surged to its highest level in a decade this week.
At the end of the trading session on July 26, the spot gold contract increased 1% to 2,388.05 USD/oz, after hitting the lowest level since July 9, 2024 on July 25. Gold futures contracts added 1.2% to 2,381 USD/oz.
US economic data was mixed to weaker today, showing inflationary pressures and weakening economic activity, paving the way for the Fed to lower interest rates twice this year.
Fed policymakers on July 26 got fresh evidence of progress in the fight against inflation, raising expectations that they will use next week's meeting to signal a rate cut. Rates start in September.
Lower interest rates reduce the opportunity cost of holding non-yielding metals.
The US Department of Commerce's Bureau of Economic Analysis said the personal consumption expenditures (PCE) price index in the US in June inched up 0.1% compared to the previous month, after remaining unchanged in May.
After the inflation data, the 10-year US Government bond yield fell to its lowest level in a week.
Meanwhile, physical demand in India, the world's second largest consumer, received a boost when the country reduced import taxes on precious metals earlier this week. Gold prices in India also surged to its highest level in a decade this week.
Comment
World gold prices increased sharply in the trading session on Friday (July 26), as the latest inflation report increased expectations that the US Federal Reserve (Fed) would start cutting interest rates in September, pulled US Treasury bond yields and the USD exchange rate down. Analysts predict a lack of consensus on the outlook for gold prices next week, when the Fed has its regular monetary policy meeting.Comment
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Comment
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Comment
Gold prices fell in the trading session on Monday (July 29), as the USD strengthened before the US Federal Reserve (Fed) began its two-day monetary policy meeting. Although gold prices are struggling at prices below 2,400 USD/oz, some analysts believe that gold prices are still capable of setting a new record this year.Comment
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Comment
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Comment
XAUUSD decreased slightly after a significant recovery period, at the Asian trading session on July 31, gold decreased slightly from the Fibonacci level of 0.382% to 2,405USD/oz, equivalent to a decrease of about 0.25% on the day.Comment
Pending home sales in the US rose 4.8% to 74.3 in June, reflecting increases in all four major regions. The increase far exceeded estimates in a Bloomberg survey of economists. The gauge is pulling away from record lows in data dating back to 2001 as the housing market tries to escape a prolonged downturn. Mortgage interest rates have dropped somewhat recently, encouraging more homeowners to list their properties.
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