Gold prices have fallen further this morning. This is also due to the continued appreciation of the dollar. Investors are waiting for information on the timetable for when the U.S. Federal Reserve (Fed) will begin tapering assets. According to the Wallstreet Journal, tapering should start as early as November.
Gold futures fell 0.10% to $1,796.40 at 10:00 PM ET.
The dollar, which normally moves inversely to the gold price, strengthened this morning. The U.S. Producer Price Index (PPI) rose 0.7% in August from the previous month and 8.3% from the previous year.
On Tuesday, the consumer price index data will be published. Inflation figures have already risen this year to the highest level in 13 years. Tomorrow’s CPI figures for the month of August may have an impact on the short-term gold price development.
Many U.S. investors believe that inflation is still temporary at the moment and that the numbers will soon move back toward 2% target inflation. The situation in Germany is different. Germans have had a stomach ache since the Weimar Republic when it comes to inflation. Gold demand in Germany has already increased this year by 35%, according to the World Gold Council.
U.S. investors are less concerned about the declining purchasing power at the moment.
Other precious metals:
Silver fixed at $23.63
Palladium is at $2,238.oo, hitting its lowest level since August.
Platinum drop 0.1% was at $960.00/ounce, hitting its lowest level since November 2020.
The Spot Market is open
Monday, September 13, 2021