Raw materials: white gold, coffee and copper in shape

 

Raw materials: white gold, coffee and copper in shape

Consumer prices rose by 8.5% year-on-year in the United States, according to the consumer price index (CPI) published Wednesday by the Labor Department.

Wholesale prices in the United States fell in July, for the first time since April 2020, giving an additional signal of a slowdown in inflation on the manufacturers' and sellers' side, according to the producer price index (PPI) published on Thursday.

"The recent strength of base metals seems to indicate that the market has temporarily dismissed recession fears," Marex brokers also note.

Gold stays the course

Gold continued to hold on for the week, even exceeding the $1,800 per ounce threshold on Tuesday and Wednesday, amid concerns for the global economy.

Market expectations regarding the next rate hikes by the Federal Reserve (Fed) in the United States "remain the determining factor in the evolution of the gold price," says Han Tan, analyst for Exinity.

"A further darkening of the global economic outlook, which limits the possibilities of rate hikes by major central banks, could in turn stimulate further gains for gold, a safe haven," he continues.

"The fact that gold continues to hold most of its gains without a significant correction may suggest that the appetite for gold is still there," comments Craig Erlam, analyst at Oanda.

The ounce of gold was trading at around $1,797.04 at around 1615 GMT, up from $1,775.50 seven days earlier in late trade.