
AI-generated summary
Gold prices moved in a narrow band within the market expectation before the consumer price index (CPI), producer price index (PPI) and retail sales data expected from the USA. While Fed officials remained conservative in their interest rate policy, geopolitical tensions were also on the agenda of precious metal markets.
Gold prices are moving in a narrow band ahead of inflation and economic activity data from the USA.
Gold Type Gold Price Gram gold 6,611 TL Quarter gold 10,795 TL Republic gold 43,040 TL Ounce gold 4,159 Dollars Half gold 21,583 TL Full gold 43,021 TL Gremse gold 107,884 TL
Spot gold was traded at $4,159.45 per ounce as of 05:51. Thus, there was no significant change compared to the previous closing.
December delivery US gold contracts increased by 0.1 percent to $4,182.60.
EYES ON US INFLATION DATA
The consumer price index (CPI), which will be announced today at 15.30 in the USA, will be closely monitored in terms of expectations regarding the Fed's monetary policy.
The producer price index (PPI) and retail sales data to be announced on Thursday are also important for the economic outlook.
Tastylive Global Macroeconomics Head Ilya Spivak stated that there is no clear direction in gold prices and said that the precious metal remains in a certain price range.
Spivak stated that if inflation and retail sales data indicate a weakening in economic momentum, markets may reduce interest rate increase expectations for the rest of the year, which may support gold.
INTEREST RATE INCREASE MESSAGES FROM FED
New York Fed President John Williams reiterated his view that another interest rate increase may be needed this year as part of the fight against inflation.
Fed Board Member Christopher Waller said that the recent rise in US bond yields reflects the strengthening of economic growth rather than the deterioration in inflation expectations.
According to CME FedWatch data, markets give a 23 percent probability that the Fed will increase interest rates in October, while pricing the probability of an interest rate increase in December at 88 percent.
The high interest rate environment can reduce the attractiveness of gold, which does not provide returns, for investors.
TENSION IN WEST ASIA IS ALSO MONITORED
Geopolitical developments are also on the agenda of precious metal markets.
After the conflicts between the Iranian-backed Houthis and Saudi Arabia intensified in Yemen, an administrative building belonging to Saudi Aramco was attacked in the city of Dhahran in the east of the country.
While the Saudi Arabian Ministry of Energy confirmed the attack, oil prices increased following the development.
The possible effects of the increase in oil prices on inflation expectations and interest rate decisions of central banks are also followed by the markets.
SILVER DECLINED, PALLADIUM INCREASED
A mixed trend was observed in other precious metals.
Spot silver fell 0.6 percent to $59.11 per ounce.
While platinum remained flat at $1,664.19, palladium increased by 0.4 percent to $1,130.81.
AI outlook — possibilities, not facts
Fed may raise interest rates in December
Likely · Within weeks
Oil prices may show more volatility in the short term
Possible · Within days
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