Hello everyone, the price of gold is currently trading around $1910, down about $10 compared to the previous trading session.
Although inflation is expected to decrease for a period of time, it may not decline quickly. This will cause the Fed to maintain interest rates for a longer period. The persistent high inflation is the main reason why gold is under pressure.
Therefore, if the US CPI index for August increases as forecasted, it will diminish opportunities for gold as an increase in interest rates by the Fed will support a stronger USD. Consequently, transaction costs and storage fees for gold will become more expensive, making precious metals less attractive to investors.
And you, how do you feel about the market today?
Although inflation is expected to decrease for a period of time, it may not decline quickly. This will cause the Fed to maintain interest rates for a longer period. The persistent high inflation is the main reason why gold is under pressure.
Therefore, if the US CPI index for August increases as forecasted, it will diminish opportunities for gold as an increase in interest rates by the Fed will support a stronger USD. Consequently, transaction costs and storage fees for gold will become more expensive, making precious metals less attractive to investors.
And you, how do you feel about the market today?
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According to a Reuters poll, US inflation rose 0.6% in August, compared with a 0.2% increase the previous month.
