Gold Hits 10-Day High on Safe-Haven Demand

Among other precious metals, spot silver rose 1.4% to $27.83 per ounce, platinum gained 2% to $940.95.

Ignacio Teson•Tuesday, August 13, 2024•1 min read

Gold has retreated to $2,500 after reaching a new ATH at $2,531.66

Investors will also be closely monitoring U.S. producer price data on Tuesday and consumer price figures on Wednesday for more clarity on inflation.

Gold prices rose over 1% on Monday, reaching their highest level since August 2, driven by safe-haven demand as traders anticipated this week’s U.S. inflation data, which could provide further insight into potential Federal Reserve interest rate cuts.

Spot gold climbed over 1% to $2,458.25 per ounce by 15:29 GMT. U.S. gold futures also gained around 1%, settling at $2,497.40 per ounce.

“What we’re seeing today in the gold and silver markets is some price support coming from bullish gold charts, which is spurring some technical buying,” said a market analyst.

Meanwhile, Israeli forces continued operations near the city of Khan Younis on Monday amid international efforts to broker a ceasefire in Gaza and prevent a broader regional conflict with Iran and its proxies.

XAU/USD

Ukrainian forces breached the Russian border on Tuesday, devastating parts of the western Russian region of Kursk in an attack that exposed the weaknesses in Russia’s border defenses in the area.

Investors are also awaiting U.S. producer price data on Tuesday and consumer price data on Wednesday for clearer insights into inflation trends.

Federal Reserve Governor Michelle Bowman slightly softened her typically hawkish tone on Saturday, highlighting some “welcome” progress on inflation in recent months.

Markets are currently pricing in a 49% chance that the Fed will cut interest rates by 50 basis points in September, according to the CME Group’s FedWatch tool. Gold bullion is considered a hedge against geopolitical and economic uncertainties and tends to perform well in a low-interest-rate environment.

Among other precious metals, spot silver rose 1.4% to $27.83 per ounce, platinum gained 2% to $940.95, and palladium increased roughly 2% to $922.97.

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ABOUT THE AUTHOR See More

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.