World gold prices slightly decreased in the trading session on August 11 after soaring to a 2-month high, while investors are waiting for US inflation data to find more signals about the interest rate outlook of the US Federal Reserve (Fed).
As of 2:15 PM Vietnam time, spot gold prices increased by 0.05% to 4,363.09 USD/ounce after falling below the 4,400 USD/ounce mark in the midday trading session of the same day. Meanwhile, December gold futures contracts increased by 0.05% to 4,421.97 USD/ounce.
Previously, spot gold prices at one point increased to 4,434.84 USD/ounce, the highest level since the beginning of June. The upward momentum brought the precious metal to surpass the 4,400 USD/ounce mark, before under profit-taking pressure and falling.
According to analysts, the improvement of cash flow into gold is supporting the recovery momentum of the precious metal. The fact that gold prices have risen above the 4,400 USD/ounce range also shows that market sentiment has become more positive after a long period of adjustment.
The focus of the market is currently shifting to the US consumer price index (CPI) report, expected to be released on August 12. This data is expected to provide more clues about the direction of the Fed's monetary policy.
The weaker-than-expected US jobs report in July has caused the market to reduce expectations that the Fed will continue to maintain tight monetary policy. If inflation data continues to show price pressure cooling down, expectations of a less rigid interest rate environment may increase, thereby creating more support for gold.
Gold does not generate interest, so it often benefits when interest rates fall or expectations of interest rates fall. Conversely, higher-than-expected inflation may make the Fed more cautious with policy easing, thereby putting pressure on the precious metal.
After increasing sharply in recent sessions, gold prices are showing signs of slowing down as investors consider taking profits. However, the fact that the price is still maintained above the 4,300 USD/ounce range shows that buying power has not weakened significantly.
On the precious metals market, spot silver prices fell 1.87% to 64.49 USD/ounce. Platinum prices fell 0.73% to 1,744.02 USD/ounce, while palladium prices fell 0.63% to 1,378.75 USD/ounce.
In the energy market, oil prices continued to rise sharply. Brent oil for October delivery increased by 1.77% to 89.27 USD/barrel, while WTI oil for September delivery increased by 1.74% to 83.56 USD/barrel.
The commodity market in the session of August 11 recorded a slight correction in gold prices after setting a 2-month high, while the remaining precious metals group simultaneously decreased. In the opposite direction, oil prices continued to increase sharply, with Brent approaching the 90 USD/barrel mark.
