World gold prices maintained their upward momentum in the trading session on August 10, continuing to stay above the 4,300 USD/ounce mark after recording the strongest weekly increase since the beginning of the year. The market is turning its attention to a series of US inflation data this week to find more signals about the interest rate roadmap of the US Federal Reserve (Fed).
As of 2:30 PM Vietnam time, spot gold prices increased by 0.28% to 4,453.51 USD/ounce. Meanwhile, December gold futures contracts increased by 0.31% to 4,413.12 USD/ounce.
Gold prices are being supported after the US jobs report showed that the labor market is weaker than expected. The number of jobs in the US unexpectedly decreased in July, while data from the previous two months was also adjusted down significantly. This development reduces concerns about the possibility of the Fed raising interest rates soon, thereby creating more momentum for gold.
After increasing by more than 7% last week and reaching a 7-week high, gold prices are currently continuing to be supported above the 4,300 USD/ounce range. Market expert Tim Waterer believes that gold is likely to remain above this price range in the short term as the market has reduced concerns about a upcoming interest rate hike.
The focus of the market this week shifted to US inflation data. The consumer price index (CPI) is expected to be released on August 12, followed by the producer price index (PPI) on August 13. These data are expected to provide more clues about the Fed's monetary policy outlook.
If inflation cools down, expectations of a more favorable interest rate environment may continue to support gold prices. Conversely, higher-than-expected inflation figures may cause the market to adjust interest rate expectations, putting pressure on precious metals.
On the energy market, oil prices remained high in the first session of the week. Brent oil for October delivery is currently at 83.70 USD/barrel, up 0.15 USD, equivalent to 0.18%. Meanwhile, WTI oil for September delivery is at 78.18 USD/barrel, almost unchanged compared to the previous session.
On the precious metals market, silver prices continued to rise sharply. Spot silver prices reached 64.3035 USD/ounce, up 0.7230 USD, equivalent to 1.14%. Platinum prices were at 1,749.65 USD/ounce, up slightly 0.02%. Meanwhile, palladium prices fell 0.80%, to 1,372 USD/ounce.
Gold prices enter the new week with positive support after the strong increase of the previous week. The diễn biến of the USD, CPI and PPI data, and the expectation that Fed interest rates will continue to be important factors determining the direction of the gold market in the coming sessions.
