The US August overall and core producer price indices rose year-over-year, and the month-over-month overall producer price index also rose, with the previous figure revised upwards. The August month-over-month core producer price index was slightly below expectations and the previous figure, but the previous figure was also revised upwards. This series of forward-looking inflation data has amplified investor concerns about the urgency of a Fed rate hike, which should put downward pressure on gold prices.

If the consumer price index, released later tonight, also shows an increase, this lagging inflation data, investor negative sentiment regarding the possibility of more than one rate hike by the Fed before the end of the year should intensify, putting downward pressure on gold prices, and potentially even causing them to fall below the $4,300 level.

Gold prices may fluctuate between $4,259 and $4,364 in the short term. Pay close attention to potential entry opportunities at the higher end of this range. There is room for short-term pullbacks, and $4,384 can serve as an important price support level; be sure to manage risk accordingly.

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

Gold price chart (1 hour):

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com