Stop The Reduction Of Three Concrete Sessions, World Gold Prices Strengthen

World gold (Photo: Doc. Unsplash)

JAKARTA - Gold prices strengthened slightly at the end of trading Friday, September 8. This strengthening halted the decline in three consecutive sessions, as investors wait for the US US consumer price index (JCI) next week.

The inflation data is likely to be a key factor in the Federal Reserve's interest rate decision at its meeting later this month.

Citing Antara, the most active gold contract for December delivery in the Comex New York Exchange division, boosted by 20 cents or 0.01 percent to close at 1,942.70 dollars per ounce, after trading to the highest session at 1,954.00 US dollars and the lowest at 1,940.80 US dollars.

Gold futures shrank 1.70 US dollars or 0.09 percent to 1,942.50 US dollars on Thursday (7/9/2023), after slipping 8.40 US dollars or 0.43 percent to 1,944.20 US dollars on Wednesday (6/9/2023), and fell 14.50 US dollars or 0.74 percent to 1,952.60 US dollars on Tuesday (5/9/2023).

Gold ended on Friday (8/9/2023) just a few cents higher after a drop that pulled prices to its lowest level in nearly two weeks on Thursday (7/9/2023). However, gold posted weekly losses of 1.2 percent as the yields of government bonds and the overall US dollar.

The precious metal has come under renewed selling pressure this week, mostly due to the strengthening of the US dollar and the increase in government bond yields, said David Russell, CEO of GoldCore. "The increase in US data and comments from FOMC members state interest rates can remain higher, longer, giving more triggers for this dynamic."

Increasing yields can have a negative impact on gold, increasing the chances of losses holding assets that do not provide returns, while strengthening the dollar makes commodity prices in units more expensive for other currency users.

Better economic data and rising oil prices to their highest level in 2023 have sparked market concerns that the Federal Reserve may need to raise interest rates further or allow them longer than expected, thereby weakening the price of gold throughout the week.

US IHK data in August is likely to be a key factor in the Federal Reserve's interest rate decision at its meeting later this month.

"Maybe the yellow metal will find a stable foothold in the range of 1,900-1,950 US dollars while waiting for inflationary data next week and the Fed meeting the following week," said Ed Moya, analyst on online trading platform OANDA, referring to the upcoming August IHK update and central bank interest rate decisions.

Meanwhile, the US Commerce Department reported on Friday (8/9EE2023) that US wholesale inventories fell 0.2 percent in July after falling by 0.7 percent in June. Meanwhile, wholesale sales rose 0.8 percent in July after falling 0.8 percent in June.

Another precious metal, silver for December delivery, fell 6.60 cents, or 0.28 percent, to close at 23,174 dollars an ounce. Platinum for October delivery cut 14.80 dollars, or 1.63 percent, to settle at 894.80 dollars an ounce.