Gold on track for third straight weekly loss as US inflation data looms
Gold prices held steady on Tuesday following a session where the metal touched a low not seen in more than one month. The market remains volatile as investors prepare for the U.S. Federal Reserve policy meeting this week. Recent price drops stem from a rally in oil prices, which increased inflation fears and strengthened expectations that the Federal Reserve will raise interest rates. Traders are now awaiting specific policy cues from the central bank to determine the next direction for bullion.
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- ✓ Gold prices held steady on Tuesday following a session where the metal touched a low not seen in more than one month.
- ✓ The market remains volatile as investors prepare for the U.
What changed
Gold prices reached a more than one-month low on Monday before stabilizing on Tuesday.
Live updates
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Gold stabilizes after hitting one-month low amid Fed anticipation
Gold prices held steady on Tuesday following a session where the metal touched a low not seen in more than one month. The market remains volatile as investors prepare for the U.S. Federal Reserve policy meeting this week. Recent price drops stem from a rally in oil prices, which increased inflation fears and strengthened expectations that the Federal Reserve will raise interest rates. Traders are now awaiting specific policy cues from the central bank to determine the next direction for bullion.
Why it matters
Gold typically moves inversely to interest rates because it provides no yield. When the Federal Reserve raises rates to combat inflation, the appeal of gold often diminishes compared to interest-bearing assets.
Still unconfirmed
- Gold prices eased Monday due to oil price surges fueling inflation concerns and Fed rate-hike bets.
- Gold held steady Tuesday after hitting a more than one-month low.
What to watch next
- The U.S. Federal Reserve policy meeting results this week
confidence 80%Sources used for this update (6)
- www.sandiegouniontribune.com — North County
- www.marketscreener.com — Comparison Chart Gold
- www.marketscreener.com — Vietnam dong, gold rates - September 14
- www.zonebourse.com — Actualités Or
- www.marketscreener.com — Gold slips as oil rally fans rate-hike bets ahead of Fed meeting
- www.marketscreener.com — Gold holds ground as investors await Fed policy cues
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Gold faces third straight weekly loss amid US inflation data
Gold prices are trending toward a third consecutive weekly decline as investors react to US inflation data and rising crude oil prices. While some reports indicate gold rose ahead of Consumer Price Index data, others show the metal fell over 1% as inflation figures increased bets on Federal Reserve rate hikes. A modest 0.3% core CPI lift briefly supported the dollar, but overall bullion prices remain under pressure from surging Treasury yields and inflation concerns.
Why it matters
Higher interest rates typically make non-yielding assets like gold less attractive. The current volatility reflects a market attempting to price in the likelihood of a September rate hike.
What is confirmed
- Gold is on track for its third straight weekly loss.
- Rising crude oil prices and Treasury yields are weighing on gold prices.
- US inflation data has increased bets on Federal Reserve rate hikes.
Still unconfirmed
- Gold fell over 1% following US inflation data.
What to watch next
- Federal Reserve decision on September rate hikes
- Further US inflation data releases
confidence 90%Sources used for this update (11)
- economictimes.indiatimes.com — Sensex Today | Nifty 50 | Stock Market Live Updates: Sensex slides 400 pts, Nifty below 23,350; metal, realty stocks tumble
- Reuters — Gold on track for third straight weekly loss as US inflation data looms
- WSJ — Gold Rises Ahead of U.S. CPI Data
- Bloomberg.com — Gold Wavers as High Oil Prices, Inflation Bolster Rate-Hike Bets
- KITCO — Gold, silver prices tumble as hot PPI, oil shock lift yields - Kitco PM Report
- FOREX.com — Gold weathers violent rates move ahead of US CPI
- CNBC — Gold falls over 1% as U.S. inflation data boosts Fed hike bets
- forbes.com — Gold And Silver Tumble As September Rate Hike Appears More Likely
- www.briefs.co — Dollar Wobbles After Small Inflation Surprise Nudges Fed Hike Odds
- www.etnownews.com — Gold prices head for 3rd straight weekly decline - key reasons behind bullion’s fall
- www.briefs.co — India's Sugar Output Seen Falling as El Niño Threatens Next Season
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