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Gold edges down after US data
AI Summary
- Gold prices fell after US economic data release, but market still speculates on Federal Reserve cutting interest rates
- Consumer price index rose by 0.4% in August, core CPI up 0.3%, producer price index unexpectedly declined
- Market expectations point to Fed cutting rates by 25 basis points, dollar index fell by 0.2%
Gold prices fell during trading on Thursday following the release of economic data that did not dissuade markets from speculating that the Federal Reserve is close to cutting interest rates.
Government data released today in the United States showed that the consumer price index rose by 0.4% in August, exceeding expectations of 0.3%, while the annual reading came in at 2.9%, in line with forecasts.
Excluding some volatile items such as energy and food, the core consumer price index rose by 0.3% on a monthly basis and by 3.1% on an annual basis, with both readings matching expectations.
This comes after producer price index data showed an unexpected monthly decline of 0.1% and a 2.6% increase year-on-year.
Meanwhile, other data revealed that the number of weekly jobless claims rose by 27,000 in the past week to 263,000, surpassing expectations of 235,000.
Despite this data, market expectations still point to the Federal Reserve cutting interest rates by 25 basis points at the meeting scheduled for September 17, according to the CME FedWatch tool, while bets on a larger 50 basis point cut edged slightly higher.
On the other hand, the dollar index fell by 0.2% to 97.5 points as of 20:54 GMT, after recording a high of 98.09 points and a low of 97.4 points.
In terms of trading, spot gold contracts declined by 0.2% to $3,674.7 per ounce as of 20:54 GMT.
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