Latest News

Gold Creeps Higher as Dollar Eases Ahead of CPI Data

Gold Creeps Higher as Dollar Eases Ahead of CPI Data By

Breaking News


Commodities 3 hours ago (Sep 12, 2022 00:54)

© Reuters.

By Ambar Warrick– Gold prices inched higher on Monday, retaining mild gains from last week as the dollar fell further from 20-year highs ahead of key U.S. inflation data this week. 

Spot gold prices rose 0.1% to $1,718.83 an ounce, while gold futures edged up to $1,730.0 an ounce by 19:15 ET (21:15 GMT). Both instruments rose slightly last week, breaking a three-week losing streak as the dollar weakened.

The dollar index fell 0.2% on Monday, with focus turning to key U.S. CPI inflation data for August, due tomorrow. Inflation in the world’s largest economy is expected to have eased further from highs hit this year, a trend which may encourage the Federal Reserve to eventually bring down its pace of interest rate hikes. 

A series of sharp rate hikes by the Federal Reserve severely dented bullion prices this year, as investors sought better yields from U.S. Treasuries and the dollar. This trend is expected to continue in the near-term, with the Fed broadly expected to raise rates by 75 basis points– the upper end of expectations- at its meeting next week. While U.S. CPI inflation did ease slightly in the past month, it remained pinned near 40-year highs by elevated food and fuel costs. 

But with fuel costs now easing from record highs hit earlier this year, inflation may see more signs of cooling. 

Other precious metals also rose on weakness in the dollar. Platinum futures added 0.2%, while silver futures jumped nearly 0.7%, with both extending gains from last week. 

Among industrial metals, copper prices fell slightly on Monday after logging strong gains last week. Copper futures fell 0.2% to $3.5470 a pound. 

Focus is now on a potential supply shortfall of the red metal, stemming from a strike at the Escondida mine in Chile. 

Escondida is the largest copper mine in the world. Last week, unionized workers voted to begin partial production stoppages from this week, with plans for a full stoppage later in the month.

The strike stems from disagreements between the union and mine owner BHP Group (NYSE:BHP) over safety conditions. 

Gold Creeps Higher as Dollar Eases Ahead of CPI Data

Oil prices slide as China COVID curbs, possible rate hikes weigh on demand outlookBy Reuters – Sep 12, 2022

By Florence Tan SINGAPORE (Reuters) – Oil prices slipped during Asian trade on Monday as the prospect of further interest rate hikes in the United States and Europe to quell…

Oil Edges Lower as Demand Concerns, Russia Price Caps Take FocusBy – Sep 12, 2022

By Ambar Warrick– Oil prices edged lower on Monday after a volatile week, as traders gauged concerns over slowing demand and U.S.-led price caps on Russian crude…

Swedish right opposition inches ahead in election cliff-hangerBy Reuters – Sep 12, 2022

By Niklas Pollard, Simon Johnson and Johan Ahlander STOCKHOLM (Reuters) -Sweden’s right bloc inched into the narrowest of leads with around 90% of votes counted after Sunday’s…

Our Apps

Terms And Conditions
Privacy Policy
Risk Warning

© 2007-2022 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

You may also like

Leave a reply

Your email address will not be published.

More in Latest News