New data disrupts gold trend By Investing.com

Written by Gina Lee

Investing.com – It was down Wednesday morning in Asian trading but remained above the 1800 mark. Investors saw a weaker than expected rally by the Fed, adding to the uncertainty as to the Federal Reserve’s start-up schedule.

It was also down 0.14% to $ 1,804.65 by 12:24 am ET (4:24 GMT) after hitting a one-week high of $ 1,808.50 in the previous session. While the dollar, which usually moves upside down with gold, appreciated on Wednesday.

US data released on Tuesday showed it increased 4% on an annual basis and 0.1% in August. The monthly increase was the smallest in six months, indicating that inflation could have peaked. However, it can remain high for some time against a background of persistent supply constraints.

The data also showed that it grew 5.3% year-on-year and 0.3% year-on-year respectively.

With weaker-than-expected data casting doubt on the timing of the start of the gradual reduction in asset purchases by the US Federal Reserve, investors are now awaiting the central bank’s policy decision, expected next week.

In the Asia-Pacific region, Chinese economic data released earlier today showed it grew 5.3 percent year-on-year less than expected, while capital investment rose 8.9 percent year-on-year. year-over-year in August. Retail sales also grew 2.5% year-on-year. In Japan, the Reuters Tankan Index for September was at 18, its lowest level in five months and lower than the previous month’s reading of 33.

As for other precious metals news, it was down 0.1% and platinum 0.4% after hitting a nine-month low of $ 930.85. And the price stood at $ 1,979.16 after prices hit their lowest level since July 2020 of $ 1,935 in the previous session.

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Update at 4:00 p.m. Riyadh time

The industry index was released a few moments ago, and it has registered a significant increase towards 34.3 points, and it is expected to stop at 18.00 points.

The Empire State Manufacturing Index measures the economic health of the manufacturing sector and is conducted through a survey of 200 of New York State’s top manufacturers. Any increase above 0 is seen as positive for the dollar and indicative of an economic recovery.

While it fell back to -0.3%, it was expected at 0.3%. August was equal to expectations at 0.4%.

Today’s data comes a day after the US release, which saw a slowdown in US inflation, followed by rising gold prices and a blow to the US dollar. .

The positivity of the data supports the vision of the US Federal Reserve, led by Jerome Powell, to help markets complete the recovery and that the resulting inflation is “temporary and still under control.”

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It was affected by the positive data and now stands at 1,796.54, down 0.46%, after rising slightly higher to 1,804.89.

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In contrast, the US dollar index, which measures the strength of the US dollar against a basket of foreign currencies, recorded 92.46, down 0.16%.