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Indonesian Minister of Economy: We will maintain a favorable situation and minimize the impact on the national economy.Gold prices rose to a more than four-month high on Monday, September 1st, as market expectations for a Federal Reserve interest rate cut this month grew, boosting golds appeal. Gold prices briefly reached $3,470 an ounce, rising about 0.4% on the day. Data showed solid growth in US consumer spending in July, while underlying inflation rebounded as import tariffs pushed up prices for some goods, but these data may not prevent the Fed from cutting interest rates this month. Furthermore, US PCE data rose 0.2% month-over-month and 2.6% year-over-year, both in line with expectations. According to CME Fed Watch, traders currently see an 87% probability of a 25 basis point rate cut by the Fed later this month.Polls show that South Korean President Lee Jae-myungs administration has a 53.6% approval rating and a 42.3% disapproval rating.Gold prices remained just below record highs as traders weighed the Federal Reserves future path and uncertainty surrounding President Trumps tariffs ahead of key US jobs data later this week. Gold prices traded near $3,460 an ounce in early Asian trading, having risen 2.3% last week. Emergency hearings regarding Trumps dismissal of Federal Reserve Governor Lisa Cook concluded last Friday without a decision, and a ruling on whether she can continue in her position is not expected until at least Tuesday. This decision is likely to determine the future of the Federal Reserve, raising concerns that reduced Fed independence would undermine investor confidence in the United States—a scenario that could boost demand for safe-haven assets like gold. Separately, a US federal appeals court ruled that global tariffs imposed by the US president under an emergency law were illegal, upholding a May ruling by the Court of International Trade. However, the judge allowed the tariffs to continue while the case is pending, suggesting that any future ban could be narrowed in scope.Zhiji Auto: In August 2025, Zhiji Auto delivered 6,108 units.

Forecast for Gold Price: XAU/USD licks US inflation-related wounds near $1,700

Alina Haynes

Sep 14, 2022 11:39

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Gold price (XAU/USD) is under pressure near $1,700 as bears take a pause following the largest daily decline in two weeks due to US inflation. However, it should be noted that a lack of important data/events appeared to limit bullion's quick movements throughout Wednesday's Asian session.

 

Tuesday's US inflation statistics rekindled fears about the Federal Reserve's fast rate hike and exacerbated recession concerns. Also acting as factors for a decline in the XAU/USD are geopolitical concerns over China and Russia.

 

In August, the US Consumer Price Index (CPI) surpassed market expectations by increasing 8.3% year-over-year (YOY), compared to 8.8% previously. However, the monthly data increased to 0.1%, exceeding the -0.1% anticipated and 0.0% previous estimates. The core CPI, which excludes food and energy, likewise exceeded the 6.1% consensus and 5.9% prior to printing at 6.3% for the month in question.

 

Following the release of US inflation statistics, wagers on the Fed's next move became further aggressive, with a 75 basis point (bps) raise next week appearing nearly probable. There is a 25% possibility that the US Federal Reserve (Fed) will announce a complete 1% hike in the benchmark Fed rate at its meeting on September 21.

 

It should be mentioned that the yield inversion expanded after US inflation data and fueled recession concerns, which in turn weighed on the XAU/USD values due to the pair's reputation as a risk-barometer. However, following the release of the data, rates on 10-year US Treasury notes rose to 3.412% and those on 2-year bonds rose to 3.76%, from roughly 3.411% and 3.745%, respectively. In addition, the US stock market experienced its largest daily decline in over two years following the announcement of the US CPI, which thrilled metal bearish.

 

In addition to the rush toward deeper ties with China, US Vice President Joe Biden's efforts to raise China's troubles contribute to Sino-American tensions. In addition, worries that Russia will retaliate harshly after retreating from certain regions of Ukraine weighed on market mood and the price of gold.

 

A light schedule ahead of the US Producer Price Index (PPI) may keep XAU/USD on the precarious floor, but bears are likely to maintain control until Thursday's US Retail Sales for the month of August and Friday's preliminary reading of the Michigan Consumer Sentiment Index for September.