Gold Prices Stabilize Despite Weekly Losses Amid Expectations of Interest Rate Cut Delay

Gold prices remained stable at the end of trading on Friday, August 15, but recorded weekly losses of 1.8%, affected by rising inflation in the United States and the subsequent decline in expectations for an imminent interest rate cut.

Gold futures closed in the U.S. market at $3382.6 per ounce, while spot prices remained at $3336.66. This performance coincided with a 0.27% decline in the dollar index, reaching 97.989 points, which supported demand for the yellow metal from holders of other currencies.

Data from the U.S. Department of Labor released on Thursday showed that the Producer Price Index rose by 3.3% year-on-year in July, exceeding analysts' expectations of 2.5%. Weekly jobless claims also decreased to 224,000 claims, compared to expectations of 228,000 claims.

The Consumer Price Index recorded a slight increase in July, bolstering speculation about the possibility of an interest rate cut during the Federal Reserve's meeting in September. However, recent inflation data has reduced expectations for a significant half-point reduction.

It is worth noting that gold, as a non-yielding asset, becomes more attractive in a low-interest-rate environment. In a related context, silver saw a slight increase of 0.2% to $37.89 per ounce, while platinum fell by 0.3% to $1351.78, and palladium dropped by 0.4% to $1140.69.