Gold Price Falls Ahead of U.S. Inflation Data as Fed Rate Hike Odds Rise to 60%
TLDR
- Gold fell around 0.8% to $4,440 per troy ounce in early European trading Tuesday
- A weaker U.S. dollar provided some support, partly offsetting selling pressure
- The Japanese yen’s rally helped push the dollar lower, which lifted gold briefly
- Markets are pricing in about a 60% chance of a Fed rate hike next week
- China’s central bank ramped up gold purchases in August to the highest level since 2023
Gold prices slipped on Tuesday as investors held back ahead of key U.S. inflation data due later this week. The metal fell around 0.8% to $4,440.10 a troy ounce in New York futures during early European trading.
Gold futures declined 0.7% to $4,447.11, while spot gold dropped 0.1% to $4,402.49. Silver edged up 0.2% to $66.32 an ounce. Platinum gained 0.3% to $1,828.78.
The U.S. Dollar Index slipped marginally to 98.90, which gave gold some support. A weaker dollar makes gold cheaper for buyers using other currencies, which tends to push prices up.
Yen Rally Puts Pressure on the Dollar
The Japanese yen continued a strong rally against the dollar on Tuesday. The yen approached its strongest level of the year after extending gains that started last week.
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