Gold finished on a high note today, Aug. 28, even with the US dollar stabilizing at its highest level since July-end, as markets awaited the release of several US economic readings this week.
Bullion for December delivery gained 0.35%, or $6.9, to close at $1,946.8 an ounce, erasing part of the losses incurred in the past two trading sessions.
However, the US dollar index, which measures the performance of the US currency against a basket of six major currencies, held ground at 104 points — the highest level since July 31, adding 2.15% since the start of August.
Traders are anticipating the issuance of the Personal Consumption Expenditures (PCE) index, the Federal Reserve's preferred inflation indicator, on Aug. 31, along with income and personal spending indicators, seeking more clues about the course of monetary policy. The monthly non-farm payroll report is scheduled for the day after.
“Strong employment, strong jobs numbers and wage numbers imply continued stress on wages and potential inflation, meaning the Federal Reserve is more likely to keep rates at high levels for a prolonged period,” Head of Commodity Strategy at TD Securities Bart Melek told CNBC.
“Gold could fall back towards the $1,900 if data remains very robust, I think it’s not outside of the realm of possibilities that gold could go to $1,840,” he continued.
On Aug. 25, both Fed Chair Jerome Powell and President of the European Central Bank (ECB) Christine Lagarde separately signaled further interest rate hikes in the coming period until inflation decelerates to the 2% target in Data released by the ECB today showed that the total M3 money supply in the Eurozone declined by 0.40% on an annual basis, compared to a 0.60% surge in June, marking the first pullback since 2010.
Comments
{{DisplayName}}
{{ElapsedTime}}