Gold declines as investors eye US inflation report

Gold prices fell today, Wednesday, but held above the lowest level in two weeks reached in the last session, as markets ayed US inflation data, which may provide indications on the path of interest rates.

According to Reuters, by 0514 GMT, gold prices in spot transactions fell 0.1% to $1,910.87 per ounce, after touching their lowest levels since August 25 at $1,906.50 per ounce on Tuesday. US gold futures fell 0.1% to $1,993.30 per ounce.

Consumer price index data in the United States is expected to be released at 1230 GMT, and with the rise in energy prices, expectations indicate that inflation will be higher.

Despite expectations that the US central bank will keep interest rates unchanged at the monetary policy meeting on September 19-20, the central bank will likely wait until the period between April and June 2024 or later before cutting interest rates, according to economists polled by Reuters. Their opinions…

Gold is highly sensitive to interest increases because this increases the opportunity cost of owning the precious metal, which does not generate a return.

As for other precious metals, silver fell in spot transactions by 0.8 percent to $22.92 per ounce. Platinum fell 0.5 percent to $905.49 an ounce, and palladium fell 0.8 percent to $1,230.44 an ounce.