Gold Gains Slightly Amid Tariff Concerns and US Inflation Data
Gold prices rose slightly in early trading on Wednesday, rising 0.2% to $3,344.70 per troy ounce, after weakening in the previous session. This increase occurred as investors digested the latest US consumer inflation data and monitored developments in global trade negotiations. According to Daria Efanova of Sucden Financial, gold showed resilience despite facing pressure from a strengthening dollar and rising US bond yields.
The latest US inflation data showed the initial impact of tariffs beginning to be reflected in prices, complicating the prospects for an interest rate cut by the Fed. Meanwhile, market participants are now awaiting the producer price index (PPI) data due to be released today. Uncertainty surrounding tariff negotiations and the August 1st trade talks deadline are adding to market caution. ANZ Research analysts estimate that the Federal Reserve will likely need several months of additional data before making a decision on an interest rate cut.
Source: (ayu-newsmaker)