Gold prices fell before the inflation data to be announced in the USA. The precious metal continued to remain under pressure due to expectations that inflation could be high.
sozcu.com.tr
Release:
Gold prices continue to remain under pressure as investors remain cautious ahead of the August US consumer inflation (CPI) data to be announced tomorrow.
Reasons such as the increase in fuel prices in the USA, the recovery in demand and the strong labor market have increased the expectation that headline inflation will rise in August.
CRITICAL INFLATION DATA IS EXPECTED
August inflation data is of great importance for the precious metal as it will be the last data to be announced before the US Federal Reserve’s September interest rate meeting.
The annual increase in CPI was 3.2 percent in July. Economists’ expectation is that the annual rate of increase in consumer prices will increase to 3.6 percent in August.
It is thought that if inflation data is above expectations, the possibility of the Fed to raise interest rates again by the end of the year may increase.
However, he stated that the pricing in the money markets is certain that the Fed will keep the policy rate constant at its September meeting.
LATEST SITUATION IN GOLD MARKET
While the markets were waiting for tomorrow’s critical inflation data, the decline in gold prices reached 0.65 percent.
An ounce of gold was traded at 1912 lira as of 16.00. Gram gold price was traded at 1650 lira. Quarter gold was sold for 2 thousand 968 liras, and Republic gold was sold for 10 thousand 762 liras.
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