Gold Highlights by Amit Gupta, Kedia Advisory
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Gold Price Movement: Gold was trading around $1,910 per ounce, near three-week lows. Traders were closely analyzing recent US Consumer Price Index (CPI) figures, which were impacting the precious metal's price.
US Treasury Yields: The yield on the 10-year US Treasury note had risen to 4.3%, approaching the 15-year high of 4.34% that was recorded on August 22nd. Rising yields can have an influence on investor sentiment and asset allocation decisions.
Dollar Index: The dollar index had experienced fluctuations but was trading near the flat line. It had reached as high as 104.93, indicating some volatility in the foreign exchange market.
US Inflation: The headline annual inflation rate in the US had increased more than expected in August, largely driven by high oil prices. However, the annual core inflation rate, which excludes volatile factors, had slowed as anticipated.
Fed's Monetary Policy: The forecast for the Federal Reserve's next steps in monetary policy had not changed significantly after the release of the CPI data. Market expectations were leaning towards a pause in interest rate hikes during the upcoming week's Fed meeting. However, there were still significant odds (around 40%) for a 25-basis-point increase in the fed funds rate in either November or December.
ECB Monetary Policy Decision: The European Central Bank (ECB) was scheduled to make a decision on monetary policy on Thursday. Investors were divided on whether the central bank would pause its current policies or continue to increase borrowing costs
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