Gold prices rose marginally during trading today, Wednesday, July 13, 2022, and hovered near their lowest level in 9 months.
This comes at a time when investors are awaiting the monthly US inflation data; Looking for clues on the way forward for the Federal Reserve’s monetary policy.
Gold Prices Today
The price of gold futures contracts for August delivery increased by 0.22% to record $1,728.50 an ounce.
Gold prices ended their trading, yesterday, Tuesday, with a decline for the second consecutive session, to reach its lowest level in 9 months.
The price of silver futures contracts – September delivery – increased by 0.51% at $ 19 an ounce, according to data seen by the specialized energy platform.
The spot platinum price rose about 0.12%, to record $844.95 an ounce, and the spot palladium price fell 1.41%, at $1991.65 an ounce.
US Inflation Data
“Traders are teetering on the edge of their seats ahead of the US CPI,” said Stephen Innes, managing partner at SBI Asset Management, and currency and gold investors are likely to execute on an as-needed basis.
Economists polled by Reuters expect the US Department of Labor’s June Consumer Price Index, due later in the day, to accelerate on a monthly and yearly basis, at 1.1% and 8.8%, respectively.
Barring a big surprise, the CPI data could unite investors’ expectations for a 75bp interest rate hike by the Federal Reserve later this month, as the US central bank seeks to rein in inflation.
“With the market convinced that the Federal Reserve will continue to rise significantly at its meeting in July, it appears that long positions in gold are still swimming in the direction of the current, but data showing that inflation has reached its peak could ease the pressure to raise prices,” Innes says. interest, and supports gold prices.”
Although gold is seen as a way to hedge against inflation, higher rates lure investors away from bullion that carries no interest.
The dollar has stabilized near 20-year highs, and continues to make US dollar-priced gold less attractive to buyers holding other currencies.
US 10-year Treasury yields also rose, reducing the attractiveness of unprofitable gold.
SPDR Gold Trust, the world’s largest gold-backed ETF, said its holdings fell 0.17% to 1,021.53 tons on Tuesday, from 1,023.27 tons on Monday.