European consumer prices hit fresh record highs at 10%
European consumer prices surged 10% in July y/y, the highest on record, above estimates of 9.7%, and up from 9.1% in the previous reading.
Excluding food and fuel, prices rose 4.8%, above estimates of 4.7%, and up from 4.3% in the previous reading.
Gold climbs for fourth straight session as dollar stalls
Gold prices rose in European trade for the fourth straight session on track for weekly gains as the dollar stalled against major rivals with risk appetite improving in the stock market.
However, gold is still on track for its sixth monthly loss in a row, the longest such streak of losses since 2018 as global central banks continue to aggressive tighten policies.
Prices Today
Gold prices rose 0.8% to $1,674 an ounce, after rising 0.1% yesterday, the third profit in a row as the dollar declined against major rivals.
Gold prices are up 1.9% so far this week on track for the first weekly profit in three weeks away from 29-month lows at $1,614 an ounce.
The Dollar Index
The dollar index fell 0.2% on Friday, the third loss in a row, hitting week lows at 111.57 against a basket of major rivals.
US 10-year treasury yields tumbled 2.4% today to week lows at 3.696%, boosting risk appetite in the market and hurting dollar's standing.
It comes in tandem with similar changes in the UK bonds market after intervention by Bank of England to purchase new long-term UK treasury bonds to stabilise the market.
The UK government's recent plan to boost economic growth shook the market and triggered concerns of a potential sovereign debt crisis.
Monthly Trades
Gold prices are down 2.15% so far in September on track for the sixth monthly loss in a row.
Higher interest rates in global markets are conducive to gold investments, in turn hurting prices.
The SPDR
Gold holdings at the SPDR Gold Trust rose 0.29 tones yesterday, the first increase since September, to 941.15 tones.
Oil declines over 1% on demand concerns
Oil prices fell on Thursday amid concerns about global demand on commodities due to prospects of economic recession.
US GDP shrank 0.6% in the second quarter according the final reading, matching estimates and the preliminary reading, and adding to the 1.6% contraction in the first quarter.
It comes at a time of doubts about the US economy as the Federal Reserve continues to tighten monetary policies and hike rates by a fast rate.
Recent official EIA data showed US crude stocks fell 200 thousand barrels to 430.6 million barrels, while analysts expected a buildup of 600 thousand barrels.
US crude futures due in November fell 1.5%, or $1.27 to $80.8 a barrel.
Brent November futures tumbled 1.2%, or $1.08 to $88.24 a barrel.
Wall Street tumbles after GDP contraction data
US stock indices declined on Thursday after negative data showed a contraction in the world's largest economy.
US GDP shrank 0.6% in the second quarter according the final reading, matching estimates and the preliminary reading, and adding to the 1.6% contraction in the first quarter.
US unemployment claims fell to 193 thousand in the week ending September 24, the lowest since April, and beating estimates of 215 thousand, while lower from the previous reading's revised 209 thousand reading.
Dow Jones fell 2%, or 602 points to 29,081, while S&P 500 fell 2.6%, or 96 points to 3,623, while NASDAQ tumbled 3.4%, or 375 points to 10,673.