Gold Spot Price Today, 08 August 2023: Below $1947 Target Price is $1912—$1892 (Sell On Rise) – GoldSilverReports.
Gold price stays bearish for the 2nd consecutive day amid sour sentiment, firmer US Dollar. US Dollar ignores mixed Fedtalks while preparing for Thursday’s US inflation. China inflicted-pessimism, cautious mood ahead of toptier events also weigh on the Gold Price.
- Gold price falls for the second day in a row as US Dollar regains poise after Friday’s sell-off.
- Investors stay cautious ahead of key inflation data from China and the United States.
- Gold price looks to $1,912 on a sustained move below $1,947 amid a beairsh daily RSI.
Risk sentiment will play a key role ahead of key inflation reports
After a selloff in the US dollar due to mixed data from the United States labor market, the greenback recovered gains against major competitors at the start of the week, and eased market worries ahead of the release of key inflation data from China. took advantage. , as well as the U.S.
US Federal Reserve
The US dollar also welcomed dovish remarks from US Federal Reserve (Fed) Governor Michelle Bowman along with US Treasury bond yields. “I will be looking for evidence that inflation is trending steadily and meaningfully downward as I consider whether further increases in the federal funds rate will be needed,” Bowman said at an event in Atlanta on Monday. , and how long the federal funds rate will need to remain at a sufficiently restrictive level.”
Fed Rate Hike
About 86.5% of market participants expect the central bank not to hike interest rates in September, according to CME Group’s FedWatch tool. Investors remain hopeful of a final Fed rate hike this year, awaiting Thursday’s consumer price index (CPI) data from the United States to confirm any expectations of a Fed rate hike. Resurgent demand for the US dollar pushed gold prices to multi-month lows.
Geopolitical Risks
So far in trading this Tuesday, investors are turning to the safety of the US Dollar amid rising geopolitical risks between China and Japan over Taiwan. Aso of the Liberal Democratic Party of Japan said that “in Taipei, we are moving from a time of peace to a time of unrest.” “Japan continues to maintain that peace and the Taiwan Strait are important to regional stability,” Aso said.
Meanwhile, concerns intensified over China’s economic recovery after the country contracted 14.5% year-on-year in July while imports plunged 12.4%, the latest data from China Customs showed on Tuesday. The greenback found support after Chinese trade data kept gold prices down. However, the downside in gold price seems to be limited due to a sluggish performance in US Treasury bond yields.
Signs of Deflation
Attention now turns to Wednesday’s Chinese CPI and Producer Price Index (PPI) data, as traders await further signs of deflation in the world’s second-largest economy. In the absence of a top-tier US economic data release this Tuesday, traders will also take cues from sentiment from Wall Street and FedSpeak.
