Spot gold closes the week down as investors await September 11 data
In global markets, spot gold declined by 0.56% to close the week at $4,430, while all eyes turned to critical US inflation data and the Fed's decision.
Leaving behind a volatile week in global markets, the price of spot gold closed down 0.56% at $4,330. Meanwhile, investors focused on the US CPI data to be released on September 11 and the Fed meeting on September 16.
Weekly Course and Close of Spot Gold
In global markets, the price of spot gold retreated by 0.56% this week to close at $4,430. During this highly volatile period, spot gold tested a low of $4,282 and a high of $4,511. Marking a two-week losing streak, spot gold remained below its 200-day moving average of $4,534.
Impact of Oil Prices and US Developments
Renewed clashes in the tensions between the US and Iran pushed oil prices above $95, causing global bond yields to rise. This led spot gold to drop to $4,282 in the first half of the week, hitting its lowest level in three weeks.
Fed Expectations and Employment Data
Mid-week dovish messages from Fed Governor Waller lowered the probability of an interest rate hike and triggered a strong buying reaction. With Friday's non-farm payrolls data showing an increase of 162,000, markets began pricing in nearly a 60% probability of a rate hike this month.
Expectation for Critical September 11 CPI Data
Gold investors have turned their attention to the US August CPI data, which will be released on Friday, September 11. While CPI is expected to rise 0.4% monthly in August and annual inflation is projected to remain steady at 3.4%, it is noted that a higher figure could increase pressure on precious metals.
Technical Levels and the Status of Gram Gold
Analysts point to $4,335 as support and $4,576 as resistance for the spot price, while gram gold closed at 6,898 TL. In the spot market, gram gold fluctuated in a wide range between 6,647 TL and 7,006 TL last week.