Global Gold Holds Around $3,340 to Start US Session
The global gold price is currently trading steadily around $3,340 per ounce ahead of the opening of the US trading session on Tuesday (August 12th). This movement occurred following the release of US consumer inflation (CPI) data for July, which showed an increase in line with market expectations. Core inflation was recorded at a monthly increase of 0.3%, while annual inflation stood at 2.7%, slightly below the 2.8% forecast.
This data fueled strong expectations that the Federal Reserve will cut interest rates at its upcoming September meeting. Interest rate cuts tend to benefit gold, as they weaken the US dollar and lower bond yields, thus increasing the appeal of the non-yielding precious metal. However, investors remain cautious ahead of the release of US producer price data (PPI) on Thursday.
So far, market sentiment has been positive toward gold, especially following global political uncertainty and the extension of the tariff truce between the US and China. However, analysts warn that gold prices still face technical resistance around $3,400, a key psychological level for market participants. If this level is broken, the chances of further gains will increase. (ayu)
Source: Newsmaker.id
