- Gold prices fell globally during early trading today, Wednesday, under pressure from the rise of the dollar, as investors await an important report on inflation in the United States, due to be issued this week, in search of indications about the size of the potential interest rate cut in September.
- Spot gold fell 0.7% to $2,507.64 an ounce, while US gold futures fell 0.4% to $2,542.80.
- The dollar index rose 0.3%, which reduces the attractiveness of gold for holders of other currencies.
- “The market seems to be waiting for a trigger to potentially push above $2,532,” Kelvin Wong, senior market analyst for Asia-Pacific at OANDA, told Reuters.
- Wong added that gold's trend will remain strong in the near term with the possibility of recording new all-time highs. In the longer term, gold may face resistance around the $2,585-$2,595 range.
- Market participants are awaiting the release of US personal consumption expenditure data, the Federal Reserve's preferred inflation gauge, due on Friday.
- Last week, Federal Reserve Chairman Jerome Powell expressed support for an imminent start to cutting interest rates and expressed confidence that inflation could now reach the bank's target of 2%.
- Among other precious metals, spot silver fell 1.2% to $29.63 an ounce, platinum fell 0.3% to $950.80 an ounce, and palladium fell 0.8% to $962.11 an ounce.
