Followers | 679 |
Posts | 140793 |
Boards Moderated | 36 |
Alias Born | 03/10/2004 |
Tuesday, August 09, 2022 4:16:51 PM
By: Investing.com | August 9, 2022
Is the inflation-play back in gold?
It seems so, although bullion aficionados will argue that hedging against inflation is an inherent part of gold’s daily flows and that the yellow metal never really diverged from that relationship; only those who don’t understand gold will utter the contrary, is their logic.
Gold prices ran above the key $1,800 level for a second day in a row on Tuesday as market participants bet that the market’s safe-haven proposition will shine in the face of Wednesday’s all-important Consumer Price Index data.
Economists tracked by Investing.com are projecting a growth of 8.7% in the CPI for the year to July, versus the rise of 9.1% during the 12 months to June. If true, it will be a sign that the Federal Reserve’s efforts in fighting inflation are starting to work.
Yet, a reduction of less than half a percent in year-on-year inflation barely makes a difference to what the Fed is fighting for. The central bank, as everyone who trades gold knows, wants to bring inflation back to its long-cherished target of 2% a year; or 4.5 times less than what the CPI was for June.
While the Fed would be inclined to keep raising rates until it gets to that inflation target, longs in gold are also betting on more safe-haven flows concurrently into the yellow metal for those wanting to hedge against economic uncertainties.
“Gold prices are firming up ahead of a pivotal inflation report that could tilt the Fed rate hike expectations scales,” said Ed Moya, analyst at online trading platform OANDA.
“Gold is getting a boost today from both safe-haven flows as stocks weaken and as the dollar softens. If inflation eases a little more than expected, gold could make a run towards the $1850 region. Geopolitical risks remain elevated and that could keep gold supported above $1800 going into year end.”
The benchmark gold futures contract on New York’s Comex, December, settled at $1,812.30, up $7.10, or 0.4%. It rose $14, or 0.8%, in the previous session.
The spot price of bullion, more closely followed than futures by some traders, was at $1,794.89 by 3:50 PM ET (19:50 GMT), up $5.76, or 0.3%.
While the mere threat of rate hikes once sent gold bulls scurrying for cover, recent weeks have shown the yellow metal holding its own against such worries, even after last week’s epic U.S. non-farm payrolls for July that showed a job creation more than twice the level forecast by economists. Such a blockbuster jobs report would typically embolden the Fed to be more aggressive with rate hikes.
Notwithstanding the ingredients in place for a more hawkish Fed, Investing.com’s Rate Monitor Tool on Tuesday afternoon showed a reduced 46% chance of the central bank implementing a 75 basis point rate hike for July, versus Monday’s bet for 67%.
Aside from the CPI, the producer price index figures for July will be released on Thursday, along with the weekly report on initial jobless claims, while the University of Michigan consumer sentiment index will be published on Friday.
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
Recent GOLD News
- Barrick On Track to Achieve 2024 Targets • GlobeNewswire Inc. • 04/16/2024 11:00:00 AM
- Notice of Release of Barrick’s First Quarter 2024 Results • GlobeNewswire Inc. • 04/09/2024 11:00:00 AM
- Strategy-Driven Barrick Builds on Value Foundation • GlobeNewswire Inc. • 03/28/2024 09:20:38 PM
- Barrick Hunts New Gold and Copper Prospects in DRC From Kibali Base • GlobeNewswire Inc. • 03/20/2024 02:00:00 PM
- Barrick Opens Academy at Closed Buzwagi Mine • GlobeNewswire Inc. • 03/18/2024 08:00:00 AM
- Barrick to Grow Production and Value on Global Asset Foundation • GlobeNewswire Inc. • 03/15/2024 11:53:01 AM
- Loulo-Gounkoto Delivers Another Value-Creating Performance • GlobeNewswire Inc. • 03/10/2024 10:00:00 AM
- Passing of the Right Honorable Brian Mulroney • GlobeNewswire Inc. • 03/02/2024 01:17:35 AM
- Kibali and DRC Partner to Promote Local Content • GlobeNewswire Inc. • 03/01/2024 02:22:43 PM
- Tanzanian Parliamentary Committee Lauds Barrick’s Work at North Mara • GlobeNewswire Inc. • 02/23/2024 12:00:00 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 02/14/2024 10:28:08 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 02/14/2024 08:05:25 PM
- Clear Strategies and Strong Partnerships Set Barrick Up to Outperform, Says Bristow • GlobeNewswire Inc. • 02/14/2024 11:00:00 AM
- Barrick Announces New Share Buyback Program • GlobeNewswire Inc. • 02/14/2024 10:59:00 AM
- Barrick Declares Q4 Dividend • GlobeNewswire Inc. • 02/14/2024 10:58:00 AM
- NGM Strongly Positioned for Growth • GlobeNewswire Inc. • 02/10/2024 01:00:16 AM
- Form SC 13G - Statement of acquisition of beneficial ownership by individuals • Edgar (US Regulatory) • 02/08/2024 03:03:08 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 02/08/2024 12:46:55 PM
- Geologically Driven Asset Management Delivers Barrick’s Third Successive Year of Reserve Growth at Sustained Quality, While Unlocking Embedded Growth Portfolio • GlobeNewswire Inc. • 02/08/2024 12:00:00 PM
- Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend] • Edgar (US Regulatory) • 02/01/2024 06:04:56 PM
- Africa’s Largest Gold Mine Now Also One of Its Greenest • GlobeNewswire Inc. • 01/29/2024 04:00:00 PM
- Barrick Continues to be a Major Value Creator for Mali • GlobeNewswire Inc. • 01/27/2024 09:00:00 AM
- Barrick’s Lumwana Super Pit Project On Track for First Production in 2028 • GlobeNewswire Inc. • 01/23/2024 03:35:00 PM
- Barrick’s Tanzanian Mines on Tier One Track With Potential for Extending Lives, Growing Production • GlobeNewswire Inc. • 01/21/2024 12:00:00 PM
- New Airport Terminal at Kahama Airstrip to Leave Lasting Legacy at Barrick’s Buzwagi Gold Mine • GlobeNewswire Inc. • 01/21/2024 08:00:00 AM
North Bay Resources Announces Successful Equipment Test at Bishop Gold Mill, Inyo County, California • NBRI • Apr 23, 2024 9:41 AM
Epazz, Inc.: CryObo, Inc. solar Bitcoin operations will issue tokens • EPAZ • Apr 23, 2024 9:20 AM
Avant Technologies Launches Advanced AI Supercomputing Network and Expansive Data Solutions • AVAI • Apr 23, 2024 8:00 AM
BestGrowthStocks.com Issues Comprehensive Analysis of Triller Merger with AGBA Group Holding Limited • AGBA • Apr 22, 2024 1:00 PM
Cannabix Technologies to Present Marijuana Breathalyzer Technology at International Association for Chemical Testing (IACT) Conference in California • BLO • Apr 22, 2024 8:49 AM
Kona Gold Beverages, Inc. Prepares for First Production Run Set to Launch May 17, 2024 • KGKG • Apr 22, 2024 8:30 AM