{"id":14553,"date":"2024-08-12T09:24:14","date_gmt":"2024-08-12T09:24:14","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=14553"},"modified":"2024-08-12T09:24:14","modified_gmt":"2024-08-12T09:24:14","slug":"gold-prices-hold-steady-ahead-of-key-us-inflation-data","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/gold-prices-hold-steady-ahead-of-key-us-inflation-data\/","title":{"rendered":"Gold prices hold steady ahead of key US inflation data\u00a0"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Key points:<\/strong>&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Spot gold prices held steady at $2,425.94.&nbsp;<\/li>\n\n\n\n<li>Markets are focused on the upcoming US PPI and CPI reports, which could influence the Federal Reserve&#8217;s decision on a potential 50 basis point rate cut in September.&nbsp;<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p class=\"wp-block-paragraph\">Gold (Symbol: XAUUSD) prices are holding their ground as the markets await key US inflation data later this week, which could significantly influence the Federal Reserve&#8217;s next move on interest rates. Spot gold was relatively unchanged, trading at $2,425.94 per ounce.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/08\/Image-75-1024x463.jpg\" alt=\"The XAUUSD-ECN daily chart reflects the price action of gold (XAU\/USD) from February to August 2024. The trend indicates a moderate increase of 0.54%, with the latest opening price at $2,429.78, closing at $2,443.02, reaching a high of $2,443.99, and a low of $2,423.89. The Moving Averages (MA 5, 10, 30) show a slight upward momentum, suggesting a continued bullish trend. The MACD (12, 26, 9) below highlights the convergence of moving averages, indicating a potential shift in momentum. The chart shows key support around $1,984.26 and a previous resistance level near $2,483.69, suggesting a recent attempt to break above this resistance. The price is currently trading above the moving averages, hinting at sustained bullish sentiment, with traders likely watching closely for a breakout or consolidation around the current resistance.\" class=\"wp-image-14554\" style=\"width:1450px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><em>Image: XAUUSD prices hold steady ahead of key US inflation data, as observed on the <a href=\"https:\/\/apps.apple.com\/au\/app\/vt-markets-online-trading\/id1372647263?mt=8\" target=\"_blank\" rel=\"noreferrer noopener\">VT Markets app<\/a>.&nbsp;<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Market analysis for gold<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">This steady performance highlights a cautious stance from the markets as the focus remains to gauge the Fed&#8217;s next steps on rate cuts.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Gold steadied ahead of key US data prints this week, with traders focused on whether they will reinforce bets the Fed will soon pivot to monetary easing <a href=\"https:\/\/t.co\/5RxNUbmS28\">https:\/\/t.co\/5RxNUbmS28<\/a><\/p>&mdash; Bloomberg Markets (@markets) <a href=\"https:\/\/twitter.com\/markets\/status\/1822813448461304206?ref_src=twsrc%5Etfw\">August 12, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The US Producer Price Index (PPI) is set for release on Tuesday, followed by the Consumer Price Index (CPI) on Wednesday. These reports are critical as they will provide insight into the current inflationary pressures in the US economy. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With the Fed&#8217;s September meeting on the horizon, traders are already pricing in a 54% chance of a 50 basis point rate cut, according to the CME FedWatch Tool.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Historically, lower interest rates have boosted the appeal of non-yielding assets like gold, as they reduce the opportunity cost of holding such assets. For example, during the financial crisis of 2008, the Fed&#8217;s aggressive rate cuts significantly boosted gold prices, as investors flocked to the metal as a safe haven.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Market outlook and potential opportunities<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If the inflation data comes in hotter than expected, it could dampen expectations of aggressive rate cuts, potentially leading to a short-term dip in gold prices. Conversely, weaker-than-expected inflation data could reinforce the case for rate cuts, providing a bullish outlook for gold in the near term.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Related article: <a href=\"https:\/\/www.vtmarkets.com\/tools\/education\/trading-guides\/how-to-trade-gold\/\" target=\"_blank\" rel=\"noreferrer noopener\">How to trade gold<\/a>&nbsp;<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Traders should monitor the data releases closely and be prepared for potential volatility in the gold market. The US jobs data released last Friday revealed that job growth in July did not meet expectations, with unemployment rising to 4.3%. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This indicates potential weakness in the labour market, increasing the likelihood of a recession and strengthening the case for a rate cut at the Federal Reserve meeting in September 2024.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Create your live VT Markets account<\/strong><\/a><strong> and <\/strong><a href=\"https:\/\/myaccount.vtmarkets.com\/login\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>start trading<\/strong><\/a><strong> now.<\/strong>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gold prices remained stable as traders await crucial US inflation data this week, which could impact the Federal Reserve&#8217;s upcoming interest rate decision.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[7],"class_list":["post-14553","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-gold"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/14553","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/comments?post=14553"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/14553\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=14553"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=14553"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=14553"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}