Gold prices held close to a two-month peak on Tuesday as traders await key US inflation data that could influence future Federal Reserve rate decisions, with broader impacts seen across precious metals markets.
Gold prices eased slightly on Tuesday but remained close to a more than two-month high as investors waited for key US inflation figures that could shape expectations for the Federal Reserve’s next move, according to VietnamPlus. Spot gold slipped 0.3% to $4,376.31 an ounce by 00:50 on August 12 in Vietnam, after earlier touching $4,434.84, its highest level since June 5. US gold futures still gained about 0.5% to finish at $4,441.10.
The latest move comes after a weak US jobs report last week revived bets that the Fed may not tighten aggressively in the months ahead, helping drive bullion higher. Reuters reported that some traders had already pared back expectations for an interest-rate increase next month, even though CME FedWatch still showed around a 50% chance of a hike in September and a 79% chance by December. Gold often benefits when borrowing costs look set to fall or stay contained because it does not pay interest.
Market attention is now fixed on the US consumer price index due on August 12 and producer prices due on August 13. A strategist at Zaner Metals told VietnamPlus that traders are looking for confirmation that inflation is easing, adding that softer annual CPI would keep gold supported. Beth Hammack, president of the Cleveland Fed, said earlier this week that it may be time to begin raising rates gradually to avoid sharper moves later, a reminder that higher rates can curb demand for non-yielding assets such as gold.
Other precious metals also weakened, with spot silver falling 1.4% to $64.80 an ounce and platinum down 0.7% to $1,740.37. In Vietnam, Saigon Jewellery Company quoted SJC gold in Hanoi at 140.5 million to 143.52 million dong per tael on the afternoon of August 11, as local prices rose alongside the international market and narrowed the gap with overseas bullion.
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