Gold prices slipped back below $4,400 an ounce as traders cautiously await key US inflation figures, even as gold-backed ETF holdings continue to increase, signalling ongoing investor interest despite market uncertainties.
Gold slipped back on Tuesday after failing, once again, to hold above $4,400 an ounce, even as investors waited anxiously for fresh US inflation data and the world’s largest gold-backed exchange-traded fund kept adding to its holdings. Spot gold in New York finished at $4,369 an ounce, down about 0.5%, after briefly touching nearly $4,436, its highest level since June 5, according to Kitco. Silver also eased, while gold futures on COMEX ended higher at $4,441 an ounce.
The pullback came ahead of the US consumer price index report for July, due on Wednesday, followed by producer price figures on Thursday. Those releases are likely to shape expectations for the Federal Reserve’s next move. Peter Grant, senior metals strategist at Zaner Metals, told Reuters that traders are waiting for evidence that inflation remains under control, adding that a cooler annual CPI reading would probably support gold. He said last week’s weaker-than-expected jobs report had already boosted bullion by reducing bets on a September rate rise.
Markets are still weighing inflation against broader risks, including tensions in the Middle East and higher oil prices. CME FedWatch data cited by VnEconomy showed futures traders assigning roughly a 50% chance of a September rate increase and a 79% chance of another move in December. The article also said Cleveland Fed President Beth Hammack argued on Monday that raising rates now could help avoid a sharper move later. Meanwhile, the SPDR Gold Trust bought a net 1.7 tonnes on Tuesday, lifting holdings to nearly 1,022.7 tonnes, and has added 4 tonnes so far this week after more than 10 tonnes last week.
The latest move also fits a broader pattern seen in previous periods of strain for bullion markets. The World Gold Council said global gold-backed ETFs suffered outflows in August 2023 as higher yields and a stronger dollar weighed on prices, even though central-bank buying offered some support. That contrast underlines how sensitive gold remains to shifts in rates, the dollar and investor sentiment.
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