One sentence summary – Gold prices are near one-month highs due to weak U.S. data, but the future outlook may change based on inflation readings; however, gold is projected to decline by nearly 1% for the month, while the U.S. dollar is on track for its first monthly increase in three months and U.S. Treasury yields are set for their fourth consecutive monthly rise.
At a glance
- Gold prices near one-month highs due to weak U.S. data
- Spot gold up 0.2% to $1,945.40 per ounce
- U.S. gold futures steady at $1,972.40
- U.S. dollar set for first monthly increase in three months
- Traders awaiting news on inflationary pressures and U.S. interest rates
Gold prices are currently hovering near one-month highs, influenced by weak U.S. data that has fueled expectations of a halt in Federal Reserve rate hikes this year.
However, the future outlook could potentially shift based on inflation readings expected later in the day.
At present, spot gold has risen 0.2% to $1,945.40 per ounce.
U.S. gold futures, on the other hand, are holding steady at $1,972.40.
Despite the recent uptick, bullion is projected to experience a nearly 1% decline for the month.
In contrast, the U.S. dollar is on course for its first monthly increase in three months.
U.S. Treasury yields are also set for their fourth consecutive monthly rise.
Traders are keenly awaiting more detailed news on inflationary pressures.
To predict the future trajectory of U.S. interest rates, market participants are closely watching the release of the Personal Consumption Expenditures (PCE) and monthly employment figures.
Recent data suggests that the U.S. economy expanded at a slightly slower rate than initially estimated in the second quarter.
Furthermore, U.S. job openings have fallen to the lowest level in nearly 2-1/2 years as of July, indicating a gradual deceleration in the labor market and economic growth.
On the international front, manufacturing activity in China has shrunk for the fifth month in a row in August, which could impact global economic dynamics.
Besides gold, other precious metals are also showing mixed performance.
Spot silver has dipped 0.3% to $24.59 per ounce.
Meanwhile, platinum is holding steady at $974.13 and is on track for its second straight monthly gain.
Palladium has risen 0.9% to $1,232.98 but is poised for a 4% monthly drop.
These various factors point to a complex and changing market situation.
As the day unfolds and more information comes to light, the outlook for gold prices and global economic trends could potentially shift.
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|– Gold prices are near one-month highs
– Soft U.S. data increases expectations that the Federal Reserve will pause rate hikes this year
– Inflation readings later in the day could change this outlook
– Spot gold is up 0.2% at $1,945.40 per ounce
– U.S. gold futures are steady at $1,972.40
– Despite recent gains, bullion is on track for a monthly decline of nearly 1%
|The U.S. dollar is on track for its first monthly rise in three months
– U.S. Treasury yields are poised for their fourth straight monthly climb
– Traders are waiting for more comprehensive news on inflationary pressures
– The Personal Consumption Expenditures (PCE) and monthly employment numbers will provide direction on U.S. interest rates
– Data released this week shows that the U.S. economy grew at a slightly slower pace than initially thought in the second quarter
– U.S. job openings dropped to the lowest level in nearly 2-1/2 years in July
– The labor market and economic growth continue to slow at a gradual pace
– Manufacturing activity in China contracted for a fifth straight month in August
– Spot silver eased 0.3% to $24.59 per ounce
– Platinum is steady at $974.13 and is heading for its second consecutive monthly gain
– Palladium climbed 0.9% to $1,232.98 but is set for a 4% monthly fall.