Gold Prices Are Rising Again: What’s Behind the Trend
14 July 19:12
Gold prices are rising on Tuesday, July 14, after falling to a two-week low—investors are awaiting the release of the U.S. Consumer Price Index, as well as remarks by Federal Reserve Chair Kevin Worsh, hoping to gain insights into the future trajectory of U.S. monetary policy. This is reported by "Komersant Ukrainian", citing Reuters.
The spot price of gold rose 0.56% to $4,022.72 per troy ounce, having touched its lowest level since July 1 during the session.
“Gold prices are rising slightly today, aided by a pause in the dollar’s recent rally,” said Ricardo Evangelista of ActivTrades. “If the CPI comes in above 3.8%, it could reinforce expectations of a more hawkish stance by the Fed and create downside risk for the price of gold.”
Spot gold lost nearly 3% in value the previous day, marking its largest one-day percentage drop in more than a month, after escalating tensions between the U.S. and Iran pushed up energy prices.
The U.S. Federal Reserve may have to raise interest rates in the near future if fresh data shows that inflation is significantly above the 2% target, said Board Member Christopher Waller.
Traders are currently pricing in a roughly 75% probability of an interest rate hike in September, according to the CME’s FedWatch tool.
Palladium rose 1.81% to $1,269.41 per ounce, while silver gained 0.88% to $58.15 per ounce. Meanwhile, the price of platinum rose 0.17% to $1,607.75.
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