AI Generated Image
Gold softens, silver firms as CPI week tests Fed repricing - Kitco AM Report
KITCO • • business
Key Points:
- Spot gold prices dipped 0.28% to around $4,329.20 per ounce, while spot silver rose 0.55% to $63.80 in early U.S. trading Monday, following last week's payroll-driven rally.
- July U.S. nonfarm payrolls declined by 23,000 with an unemployment rate of 4.1%, reducing the market's expectation of a September Federal Reserve rate hike to about 44%, down from two-thirds a week earlier.
- Geopolitical tensions in the Strait of Hormuz persist, with Iran demanding U.S. concessions before fully reopening the waterway, influencing oil prices, inflation expectations, and safe-haven demand for gold.
- Global markets showed mixed performance overnight, with gains in Japan, Hong Kong, and Germany, while France and the U.K. saw slight declines; U.S. stock futures remained mostly unchanged after the S&P 500 hit a record high.
- Technically, gold bulls aim to surpass resistance levels at $4,349.82 and $4,368.00 to target $4,430.00 and $4,481.78, while silver bulls seek to break above $65.21 to reach $67.00, with respective support levels noted for downside risk.
