Gold futures rose $1.40 on weak dollar-bond yields to support the market

gold futures price Closed Wednesday (10 Aug.) up $1.40 on the positive of the dollar’s depreciation. and the fall in US government bond yields. After the US consumer price index (CPI) was lower than expected.

Comex gold contract Delivered in Dec. Plus $1.40 to close at $1,813.70/ounce.

A weakening dollar will increase the attractiveness of gold. by making gold contracts cheaper for holders of other currencies The fall in US government bond yields. It will reduce the opportunity cost of holding gold. Because gold is an asset that does not return in the form of interest.

In addition, gold prices were also driven by forecasts that The Federal Reserve (Fed) will slash interest rate hikes following a lower-than-expected CPI indicates US inflation has passed its peak.

The latest CME Group’s FedWatch Tool shows investors weighed 61.5% that the Fed would raise interest rates 0.50% to 2.75-3.00% at its Sept. 20-21 meeting and weighed only 38.5% at the Fed. will raise interest rates by 0.75%

Investors previously weighed 68.5 percent that the Fed would raise interest rates by 0.75% to 3.00-3.25 percent at its meeting on September 20-21, and only weighted 31.5% that the Fed would raise interest rates by 0.50. %

If the Fed raises interest rates by 0.75% in September, it will raise interest rates by 0.75% for the third time following raising 0.75% in both June and July.

The Labor Department said its CPI, a measure of consumer spending inflation, rose 8.5 percent year-on-year in July. It was lower than analysts’ forecast of 8.7 percent following hitting 9.1 percent in June, the highest level in 40 years.

On a monthly basis, the CPI was flat in July. or an increase of 0.0%, below the 0.2% forecast.

Meanwhile, the core CPI, excluding food and energy, rose 5.9 percent in July year-on-year. It was lower than analysts’ forecast of 6.1%.

On a monthly basis, the core CPI rose 0.3% in July, below the 0.5% forecast.