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August 2, 2021

Oops! Consolidation of Gold Back Stunted

 Gold prices eased slightly at the start of trading earlier in the week following the US dollar’s ​​rebound, with market focus now shifting to the US NFP jobs report to be published on Friday this week.


Spot gold traded lower at $ 1,811 per ounce in the Asian session, while gold futures traded at $ 1,814 per ounce.


Gold returned to decline after demand for the US dollar rebounded following profit -taking by investors before closing weekend and month -end trading.



The US consumer personal expenditure (PCE) price index reading also affected gold trading after it strayed from market expectations to rise higher in June.


On an annual basis, core PCE was reported to have increased 3.5% in June from an expected 3.7%, but slightly increased from the 3.4% recorded in the previous month. This indicates that growth in the inflation rate is not as feared by the market before.


However, the precious metal still survived a lower fall, supported by uncertainty in the market triggered by concerns over the rapidly spreading Covid-19 outbreak and weaker-than-expected growth prospects.