Profit-Taking Puts Pressure on Gold: Gold prices declined during Tuesday’s trading as profit-taking increased
after the metal reached its highest level in over a week.

Contents

Profit-Taking Puts Pressure on Gold

Asian Stocks

General Inflation Index

Profit-Taking Puts Pressure on Gold and Key Data That Could Push Prices to This Level

Gold prices fell during Tuesday’s trading as profit-taking increased after the metal reached its highest level in over a week.
Meanwhile, market participants await key U.S. inflation data
that may provide further insights into the Federal Reserve’s next monetary policy decision.

Gold at Monday’s Close:

Gold futures prices extended their gains on Monday, with increased demand
For safe-haven assets amid renewed geopolitical tensions and expectations
that the Federal Reserve may end its tightening cycle in September.
At the close, December gold futures rose by 1.25% or $30.6 to $2,504 per ounce,
marking a new record high for the most actively traded gold contract for the second time this month.

Asian Stocks Recover Losses After Last Week’s Setback

Asian stocks rose, fully recovering their losses from last week,
supported by the advancement of Japanese stocks.
Japanese stocks surged after the holiday,
boosted by a weaker yen.
The MSCI Asia-Pacific index climbed by as much as 1%,
erasing the losses incurred last week when risk aversion led to global stock indices collapsing.
The U.S. stock volatility index “VIX” (which reflects investor anxiety and fear) spiked above 65 points at one point,
compared to its historical average of about 19.5 points.

Expected 0.2% Increase in U.S. Overall and Core Inflation for July Compared to June

Inflation in the United States may have risen slightly in July,
but not to the extent that would prevent the Federal Reserve from cutting interest rates,
a move widely expected next month.
The Consumer Price Index is expected to increase by 0.2% from June for both the overall and core inflation,
which excludes food and energy.
While both are expected to accelerate compared to June,
they are expected to rise at the slowest annual pace since early 2021.

Profit-Taking Puts Pressure on Gold

Profit-Taking Puts Pressure on Gold

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