The series of July consumer price index results released last night in the US did not reinforce investors’ concerns that the Federal Reserve does not need to raise interest rates urgently. While the overall and core consumer price indices compared to the same period last year, as widely expected, recorded a decline, the month-on-month overall and core consumer price indices, as widely expected, showed an increase. This lagging inflation data will suppress investors’ willingness to buy gold at high levels, as inflation has not shown a significant decline.

If the US July producer price index, a leading inflation data, released later tonight, is higher than expected and the previous figure, investors will again be concerned that the Fed still has grounds to raise interest rates. This will increase the likelihood of investors cashing out in the gold market to avoid the risk of interest rate movements, which should suppress the upward trend of gold prices.

Gold prices may fluctuate between $4,388 and $4,490 in the short term. Pay close attention to the lower end of this range for potential buying opportunities, as there is short-term upside potential. $4,368 can be considered an important price defense reference level; be sure to manage the corresponding risks.

Risk Warning: This article is for market analysis purposes only. Price ranges and levels mentioned are for reference only and do not constitute any investment advice. Precious metal prices are highly volatile; please make independent and prudent decisions and manage your own risk.

Gold Price 1-Hour Chart:

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com