International gold prices rise, the U.S. index is not far from its one-year high; investors wait for two guidelines

On Tuesday (October 12), international gold prices rose, and the inflation outlook triggered by soaring energy prices was bullish, and the U.S. dollar index fell. However, under the expectation that the Fed is about to start reducing bond purchases, the US dollar index is still hovering near the one-year high of 94.504 touched last month.

At GMT+8 16:03, spot gold rose 0.19% to US$1757.42 per ounce; the main COMEX gold contract rose 0.10% to US$1757.5 per ounce; the US dollar index fell 0.03% to 94.341.


Market participants are now waiting for the minutes of the Fed’s September 21-22 policy meeting and the consumer price index, both of which will be announced later this week.

Stephen Innes, managing partner of SPI Asset Management, said: “Gold is relatively elastic, and the market is revolving around stagflation and economic growth prospects (arguments).” However, he also said that investors are reluctant to catch up until the minutes of the Fed’s September meeting are released. .

An analyst from ANZ Research said in a report: “In the context of generally low interest rates around the world, the risks surrounding slowing growth and rising inflation will still prompt investors to continue to strategically allocate gold,” adding that they The price of gold is expected to fall back after rising to US$1850 next year.

An ANZ Bank analyst said in a report: “Economy seems to be entering a more challenging cycle. We believe that investors and companies will pay attention to economic data and corporate performance before assessing the short-term situation. ."

Data released on Tuesday showed that Japan’s September wholesale inflation rate was at a 13-year high. Analysts say that rising input costs have added pressure to manufacturers that have been hit by supply restrictions and cast a shadow over the prospects of the world's third largest economy.

Toru Suehiro, senior economist at Daiwa Securities, said: "If the cost of raw materials accelerates, companies selling end products will face the dilemma of profit erosion. Since Japan is a net importer of fuel, this cost-driven inflation may harm the economy. ."

A survey released on Monday showed that British consumer confidence fell to a five-month low in September, as households struggled to cope with rising inflation and a shortage of some goods, which greatly reduced their confidence in their financial health.

In an interview with the Yorkshire Post, Bank of England Governor Bailey said that Britain’s inflation rate above the central bank’s 2.0% target is worrying and must be managed to prevent it from becoming a permanent trend. Earlier, Sanders, a member of the Bank of England’s Monetary Policy Committee (MPC), told the public that as inflationary pressures in the UK economy increase, it is necessary to prepare for a “significantly early” interest rate hike.