Gold is holding near to $1,930 an ounce with the precious metal lacking a clear direction as traders and investors try and assess the true health of the global economy.
Tomorrow brings the latest US inflation data, which will be an important reference point for the Federal Reserve when the committee meets next month to decide whether to keep raising interest rates or if inflation is now sufficiently on the downward trajectory for the US central bank to be able to leave rates unchanged.
As a result, the inflation data will also be significant for gold as so much of its recent price action has been based on the prospect of the Fed soon coming to an end of its series of rate hikes. If tomorrow’s data leaves traders believing that the Fed will implement another hike in September then that could send gold crashing down to $1,900 an ounce.
If however, the data falls in line with expectations then gold can continue trading as it has been throughout August so far with a slow and steady decline as market confidence creeps slowly higher.
Rupert is a Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. He brings with him a breadth of experience in writing about energy and commodities having worked as an oil markets reporter and then precious metals reporter during the seven years he worked at Bloomberg News.
As well as market analysis, Rupert writes longer-form thought leadership pieces on topics ranging from carbon markets, the growth of renewable energy and the challenges of avoiding greenwash while investing sustainably.
This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.