Gold near record highs due to soft US PPI data, Euro rises against dollar

From Investing.com: 2024-08-14 04:15:00

Soft US inflation data and escalating geopolitical tensions have kept gold near record highs. With weaker-than-expected US Producer Price Index figures, gold prices dropped slightly but remained around $2,465. The annual producer inflation rate slowed to 2.2%, fueling expectations of a larger interest rate cut by the Federal Reserve in September. Analysts believe gold may hit new highs, especially with upcoming inflation data. The US Consumer Price Index report today may affect gold prices, with projected figures likely moving XAU/USD accordingly.

The euro rose against the dollar as the US Producer Price Index data fell short of expectations. With US producer prices up by 2.2% year-over-year, below forecast, the market anticipates a rate cut by the Federal Reserve in September. The US Consumer Price Index data expected today could influence market expectations. The EUR/USD pair stayed steady below the 1.1000 level, waiting for the US CPI figures. A higher CPI may lead to a downward correction, while lower numbers could push the pair above 1.1000.

The Australian dollar strengthened against the US dollar on Tuesday, following the soft US Producer Price Index report. With improved market sentiment and risk appetite, investors anticipate a rate cut by the Federal Reserve in September. Australian business conditions and wage growth remain positive, supporting the Reserve Bank of Australia’s hawkish stance. The US CPI data today could impact the AUD/USD pair, with higher than expected figures potentially pushing the pair lower and lower numbers likely leading to an increase in AUD/USD.



Read more at Investing.com: Gold Near Record Highs; Euro Rises on Soft US PPI Data