Global Gold Market Eyes New US Economic Data

Global gold prices were nearly unchanged in early trading on Wednesday as traders await US inflation figures and a speech by the Federal Reserve chair, factors that could shape the market's next direction.

Global gold prices remained almost unchanged in early trading on Wednesday as traders await the release of US inflation data and the Federal Reserve Chairman's speech; Factors that can affect the next direction of the market.

Sefir Arjan - Economic Group: The world price of gold remained almost unchanged in early trading on Wednesday, October 14; Because investors are waiting for the publication of the US consumer price index. This data could provide new clues about the future path of the Federal Reserve's interest rate and influence the direction of the yellow metal's next move.

The price of each ounce of cash gold in the early trading of the Asian market was at the level of 4 thousand 160 dollars and 14 cents and there was no noticeable change. But its value was not reduced either.

The release of US consumer price index statistics on Wednesday is one of the most important economic events for traders. This report can change the market's expectations about the future decisions of the US central bank.

If the inflation rate is announced higher than the forecasts, the possibility of an interest rate increase in the upcoming meeting of the Federal Reserve will be strengthened. Such a scenario can reduce the attractiveness of gold; Because this metal, unlike income-generating assets, does not pay periodic interest, and the increase in the interest rate increases the opportunity cost of its maintenance.

Conversely, the release of lower-than-expected inflation data could increase the likelihood of a more lenient monetary policy and support gold prices.

Investors are also watching Federal Reserve Chairman Kevin Warsh's speech on Friday. His comments could provide more information about policymakers' assessment of the state of the economy and the likely path of interest rates in the coming months.

In the current situation, the gold market is influenced by two main factors: on the one hand, economic and political uncertainties can increase the demand for safe assets; On the other hand, the possibility of the continuation of the contractionary monetary policy of the United States can be an obstacle to the growth of prices.

In this way, the release of inflation statistics and the statements of the Federal Reserve officials can play a decisive role in the short-term direction of the global gold market.

The global gold price decreased following the escalation of tensions in the Middle East and concerns about the increase in energy prices; Inflationary concerns and the possibility of the US interest rate remaining high have also put pressure on the precious metals market.

After falling to the lowest level of the last two months, the global gold price has recovered part of its fall; But the technical signs still do not indicate a strong return of buyers. $4,300 resistance, $4,100 support and the release of US inflation data are the most important factors that can determine the next path of the gold ounce.

After falling below 4300 dollars, the global gold price returned to above 4500 dollars due to the weakening of the dollar; But a strong US jobs report halted the ounce's upward trend. Now traders are waiting for August inflation report; Data that can change the direction of interest rates and gold prices.