Gold Down, U.S. Inflation Data
Gold dipped in Asia on Tuesday morning ahead of U.S. inflation statistics, suggesting when the Federal Reserve of the United States will begin asset reduction.
By 12:07 a.m. ET, gold futures had down 0.09 percent to $1,792.85. The dollar, which normally moves in the opposite direction of gold, fell slightly on Tuesday after reaching a two-week high on Monday.
The yellow metal is trading below $1,800 as investors assess the risks posed by the COVID-19 Delta version and rising inflation. Across the Atlantic, inflation in the eurozone expects to fall “in all likelihood” by 2022. Still, according to ECB executive board member Isabel Schnabel on Monday, the European Central Bank (ECB) is prepared to intervene if it does not.
On Wednesday, China will also announce industrial production and retail sales figures in the Asia Pacific.
Other precious metals fell 0.1 percent, with silver and platinum down 0.1 percent and palladium rising 0.3 percent.
Investors look to U.S. Inflation Data
Investors are now waiting for consumer price index (CPI) data from the United States, expected later in the day. If the number is higher than predicted, Oanda Corp. senior market analyst Edward Moya predicts that the Fed would begin asset cutting in November rather than December.
Gold prices are holding stable as investors await the August inflation report, which may signal temporary inflation. According to Moya, the Delta variation shock to supply chains “will likely expose some positioning for an upside surprise in the CPI report, which might drive gold down. The spotlight is also on the Fed’s next policy decision, which will announce next week.
Oil hits 6-week high
On Tuesday, oil prices rose to a six-week high as another hurricane threatened to bring heavy rain to Texas and portions of Louisiana still recovering from Hurricane Ida. The International Energy Agency predicted a significant demand rebound for the rest of the year.
By 0842 GMT, Brent crude was up 50 cents, or 0.7 percent, to $74.01 per barrel. West Texas Intermediate (WTI) crude in the United States rose 43 cents, or 0.6 percent, to $70.88 per barrel.
Both contracts had climbed for three sessions in a row and were trading at their highest levels since early August. Under a scheduled auction to raise funds for the federal budget, the United States government agreed to sell crude oil from the nation’s emergency reserve to eight firms, including Exxon Mobil and Chevron.
Traders believed that China’s scheduled release of oil from strategic petroleum reserves (SPRs) might raise supply in the world’s second-largest oil consumer.
According to the Energy Information Administration’s monthly drilling productivity report, oil output from seven significant shale formations in the United States expect to increase by roughly 66,000 bpd in October.
Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. If you are interested in following the latest news on the topic, please follow Finance Brokerage on Google News.