100 USD banknote. (Photo: THX/TTXVN)

Gold prices fell on August 14, as higher-than-expected inflation data and lower jobless claims in the US lowered the possibility of a large-scale interest rate cut by the US Federal Reserve in September, thereby pushing the US dollar and government bond yields up.

At 00:50 Vietnam time, spot gold fell 0.5% to $3,337.21 an ounce. Gold for December delivery closed down 0.7% to $3,383.2 an ounce.

The dollar index, which measures the greenback against a basket of major currencies, rose 0.5% from its lowest in more than two weeks, making gold less attractive to buyers holding other currencies.

Meanwhile, the yield on 10-year US government bonds also rose from a one-week low, thereby increasing the opportunity cost of holding non-yielding assets such as gold.

The US Labor Department reported that its producer price index (PPI) rose 3.3% year-over-year in July, beating expectations for a 2.5% increase. The stronger US producer price data dampened expectations for a larger 0.5 percentage point interest rate cut next month. Meanwhile, weekly jobless claims were also lower than expected, at 224,000 versus the forecast of 228,000.

Ole Hansen, head of commodity strategy at Saxo Bank, said gold prices fell as stronger-than-expected US PPI data could dampen expectations for a rate cut. He explained that the data would also help push the Fed’s preferred inflation gauge, the core personal consumption expenditure (PCE), higher in July, potentially making the Fed cautious about rate cuts.

Traders are betting the Fed will cut interest rates by 25 basis points next month and another cut in October. Gold, a traditional safe haven during times of economic or geopolitical stress, tends to rise in low-interest-rate environments.

Kiril Kirilenko, senior precious metals analyst at CRU, said the gold rally is not over, but is in a consolidation phase. He said buyers are waiting for a new catalyst, and rate cuts could be the catalyst to reignite the rally. Kirilenko predicted that gold prices could head towards a record high of $3,500 an ounce by the end of this year or early next year.

In the market of other precious metals, spot silver price lost 1.3% to 37.97 USD/ounce, platinum price increased 1.1% to 1,354.33 USD/ounce.

In Vietnam, on the afternoon of August 14, Saigon Jewelry Company (SJC) listed the price of gold bars at 123.70-124.70 million VND/tael (buy-sell)./.

According to vietnamplus.vn

Source: https://huengaynay.vn/kinh-te/thong-tin-thi-truong/dong-usd-bat-tang-gia-vang-quay-dau-giam-do-du-lieu-lam-phat-cao-hon-du-kien-156725.html