Gold Experiences Slight Decline Amid Anticipation of US Inflation Data and Central Bank Statements

Gold prices witnessed a limited decline during trading on Thursday, September 11, amid the anticipation that investors are experiencing for the release of US inflation data and the announcement of decisions by major central banks.

Economic data released on Wednesday showed a surprising decline in US producer prices in August "due to falling commercial service margins and modest increases in commodity costs".

In this context, market attention is currently directed towards the consumer price index data in the United States. According to a Reuters survey, "the monthly increase in August is expected to be 0.3% after a rise of 0.2% in July, while the annual rate of consumer price inflation is expected to be 2.9% after 2.7% in July".

For his part, one analyst commented on these developments, stating that a market analyst at City Index told Reuters: "Any additional weakness in US data would provide further support for the yellow metal, given the view that two interest rate cuts are expected before the end of this year".

It is noteworthy that the non-farm payroll report released last week "indicated a slowdown in the labor market" has bolstered expectations for the initiation of monetary easing policy. It is known that gold, which is a non-yielding asset, "usually tends to rise in low interest rate conditions".

In terms of pricing, gold futures fell by about 0.4% to $3667.2 per ounce, while the spot price of the yellow metal decreased by 0.2%, recording $3630.2 per ounce.