Gold is trading lower on Thursday after touching ten-week highs earlier in the session, as investors digest the latest US inflation data and reassess the outlook for Federal Reserve monetary policy. The precious metal is down 0.74% at $4,375.79 per ounce, while silver falls 1.03% to $64.65 per ounce.
Softer-than-expected US inflation figures have eased concerns that the Fed may need to resume interest rate increases, following a spike in energy prices driven by the war with Iran that had amplified inflationary pressures.
Investors are now awaiting further employment and inflation indicators ahead of the Federal Reserve's next policy meeting in September. Attention will also turn to remarks from Fed Chair Kevin Warsh at the annual Jackson Hole economic symposium at the end of August. A more restrictive monetary policy stance tends to weigh on gold, as the metal generates no yield.
Despite recent volatility, gold has held above the $4,000-per-ounce level in recent weeks, supported in part by increased central bank purchases, notably from China. This week's gains pushed the metal above its 100-day moving average for the first time since April, while investors continue to monitor developments in the Middle East conflict and their implications for energy prices.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/?p=530196
