{"id":14600,"date":"2024-08-15T06:37:31","date_gmt":"2024-08-15T06:37:31","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=14600"},"modified":"2024-08-15T06:37:31","modified_gmt":"2024-08-15T06:37:31","slug":"gold-prices-flat-as-rate-cut-hopes-dim-on-us-inflation-data","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/gold-prices-flat-as-rate-cut-hopes-dim-on-us-inflation-data\/","title":{"rendered":"Gold prices flat as rate cut hopes dim on US inflation data\u00a0"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Key points:<\/strong>\u00a0<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Gold prices remain flat after a 1% drop, influenced by US inflation data that dimmed expectations for a larger Federal Reserve rate cut.\u00a0<\/li>\n\n\n\n<li>The US consumer price index (CPI) rose moderately in July, slowing annual inflation to below 3% for the first time since early 2021.\u00a0<\/li>\n\n\n\n<li>Market participants now see a reduced probability of a 50-basis-point rate cut in September, down to 36% from 50% before the data release.\u00a0<\/li>\n\n\n\n<li>Upcoming US retail sales and jobless claims data could further influence market sentiment.\u00a0<\/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 prices (Symbol: XAUUSD) traded in a flat momentum following a sharp decline in the previous session, as recent US inflation data tempered expectations for a more aggressive rate cut from the Federal Reserve. Spot gold hovered around $2,448.49 per ounce, nearly unchanged from the previous trading day.&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-83-1024x469.jpg\" alt=\"The 15-minute chart for XAU\/USD (Gold) illustrates a recovery following a sharp decline earlier in the session, where the price fell to a low of 2438.13. Since then, the price has rebounded, closing at 2457.18, just shy of the resistance level at 2457.25.\" class=\"wp-image-14601\" style=\"width:1450px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><em>XAUUSD prices flat as rate cut hopes dim on 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>.\u00a0<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On a technical analysis front, the 15-minute chart for XAUUSD (Gold) shows a recovery after a sharp decline earlier in the session, where the price dropped to a low of 2438.13. The price has since rebounded, closing at 2457.18, just below the resistance level of 2457.25. The EMA (24, 24, 72) lines are currently converging, indicating potential for further upside if the price can maintain above the 2457 level.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The MACD histogram is positive, signaling increasing buying momentum, which supports the likelihood of continued recovery. However, traders should watch the resistance near 2460 for any potential reversals or consolidations.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Reflecting on the US CPI<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The release of the US consumer price index (CPI) data for July showed a moderate increase in prices, aligning with market expectations. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The annual inflation rate fell below 3% for the first time since early 2021, providing the Federal Reserve with more room to consider cutting interest rates. However, the likelihood of a substantial 50-basis-point cut in September has decreased, with market odds dropping from 50% to 36%, according to the CME FedWatch Tool.\u00a0<\/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\">US inflation has fallen to 2.9% in July, bolstering the case for the Federal Reserve to cut interest rates at its meeting in September <a href=\"https:\/\/t.co\/30kFwJXzCL\">https:\/\/t.co\/30kFwJXzCL<\/a> <a href=\"https:\/\/t.co\/yYT9mk3dMc\">pic.twitter.com\/yYT9mk3dMc<\/a><\/p>&mdash; Financial Times (@FT) <a href=\"https:\/\/twitter.com\/FT\/status\/1823703592605270292?ref_src=twsrc%5Etfw\">August 14, 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\">Gold, which tends to benefit from a low interest rate environment due to its non-yielding nature, struggled to find upward momentum in light of these developments. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The market is currently focused on the upcoming US retail sales and initial jobless claims data, which are expected to provide further insight into the strength of the US economy and the Federal Reserve&#8217;s potential policy direction.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Trading opportunities and setups in gold<\/strong>&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The recent inflation data suggests that while a rate cut in September is likely, it may not be as deep as previously anticipated. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This scenario could lead to <a href=\"https:\/\/www.vtmarkets.com\/tools\/education\/trading-guides\/cfd-trading-strategies\/\" target=\"_blank\" rel=\"noreferrer noopener\">range-bound trading<\/a> in gold prices as traders weigh the potential for further rate cuts against the ongoing economic data releases. Monitoring US retail sales and jobless claims closely will be crucial for making informed trading decisions in the short term.\u00a0<\/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 steady as US inflation data dampens hopes for a larger Fed rate cut. Explore the implications for gold traders and upcoming economic indicators.<\/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":[7,46],"class_list":["post-14600","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-gold","tag-precious-metals"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/14600","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=14600"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/14600\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=14600"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=14600"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=14600"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}