World gold prices continued to rise in the trading session on August 11, surpassing the 4,400 USD/ounce mark as investors waited for US inflation data to find more signals about the interest rate path of the US Federal Reserve (Fed). Technical buying and expectations of less rigid monetary policy are supporting the precious metal.
Spot gold rose 1.80% to 4,419.49 USD/ounce. December gold futures rose 1.36% to 4,479.72 USD/ounce.
Gold prices are maintaining above the 4,400 USD/ounce range after a sharp increase in recent sessions. The fact that the precious metal has surpassed the 100-day moving average has activated additional technical buying power, while cash flow into gold ETF funds in China is also showing signs of improvement.
The recovery of gold takes place in the context of the market continuing to assess the monetary policy outlook of the Fed. The latest US jobs report shows that the labor market shows signs of cooling down, increasing expectations of the possibility that interest rate policy will be less tight. Gold does not bring yields, so it often benefits when interest rate expectations fall.
The focus of investors is currently shifting to the US consumer price index (CPI), expected to be released on August 12. This data is expected to provide more clues about the Fed's interest rate roadmap. If inflationary pressure cools down, more favorable monetary policy expectations may continue to support gold prices. Conversely, higher-than-expected inflation figures may put pressure on precious metals.
After a strong recovery and surpassing the 4,400 USD/ounce mark, gold prices are showing clear buying power again. However, a rapid increase may also cause market corrections when investors take profits. Gold maintaining high price zones will be an important factor in determining whether the current recovery momentum can continue or not.
On the precious metals market, spot silver prices rose 0.24% to 65.8880 USD/ounce. Spot platinum prices rose 0.40% to 1,763.75 USD/ounce, while palladium rose 0.23% to 1,390.75 USD/ounce.
On the energy market, WTI oil for September delivery increased by 0.07% to 82.19 USD/barrel, while Brent oil for October delivery increased by 0.03% to 87.75 USD/barrel.
Thus, the commodity market recorded a widespread increase, with gold surpassing 4,400 USD/ounce, silver approaching 66 USD/ounce and other precious metals simultaneously going up. Oil prices also remained high, while investors continued to wait for US inflation data to assess the impact on Fed policy.
