On Wednesday, the precious yellow metal US gold futures’ prices had recouped some of their losses stomached last week with American currency beating a hasty retreat from a roughly four-month trough, as tepid US Consumer Price Index in July had offset concerns over a potential bet on rate-hike alongside an ease of fiscal support for the economy as early as by next month.
Nonetheless, a tapering of the US Federal Reserve’s $120 billion in monthly bond repurchase program would have technically bolstered the gold’s safe-haven appeal. On top of that, US Fed’s Barkin was quoted saying on Wednesday that the United States might be ‘closing in’ on a taper-talk, but the Central Bank would more likely to monitor the labour market’s progress a few more months, imperatively easing market participants’ worries of an imminent tapering of fiscal support which in effect had hit the US Dollar Index with a hefty whiplash, helping the bullion’s cause.
As a matter of fact, earlier in the day the US Labour Department data had revealed that its index for US Consumer Price, the change in amount spent by the consumers for goods and services in a given period of time, rose 0.5 per cent in July after space-diving as much as 0.9 per cent a month earlier, solidifying the US Fed’s stance that an outburst in the economy’s inflation indicators had been cooling off and reviving a safe-haven appeal for the bullion.
Gold soars over 1 per cent as US inflation worries abate Citing statistics, in the day’s commodity market wind-down, spot gold gained 1.4 per cent to $1,752.46 an ounce, while US gold futures’ prices had jumped as much as 1.2 per cent to settle down at $1,753.30 per ounce.
Meanwhile, addressing to a tepid growth in Consumer Price Index last month, a chief market strategist at Blue Line Futures in Chicago, Phillip Streible said, “An inflation number that’s in line leaves the Fed scratching their heads and has them more on a wait-and-see-and-interpret-more-data type of approach”.
Among other precious metals, silver contracts rose 1 per cent to $23.55 an ounce and platinum futures climbed 2.5 per cent to $1,020.07, while palladium indented 0.3 per cent to $2,633.90 per ounce. A strong US job openings data for June released on Friday had bottomed gold futures’ prices below a key psychological handle of $1,800 last week.