Gold prices 3% drop amid weaker dollar and volatility ahead of U.S. inflation data
Gold prices fell amid rising tensions in the Middle East and concerns over interest-rate hikes, 3% lower. The dollar weakened ahead of U.S. inflation data, while silver prices also showed a trend of settling at lower levels.
10Gold prices fell on 3%. Reports said the move occurred as concerns over inflation and interest-rate hikes grew amid rising tensions in the Middle East. Both spot and futures prices weakened.
9Gold fell 1% or more on the day ahead of the release of the U.S. Consumer Price Index. At the same time, gold prices were observed settling at lower levels than before. Markets were closely watching the inflation data.
The dollar was broadly weak amid expectations that U.S. inflation data could curb the possibility of interest-rate hikes. In some trading, observations of an unstable ceasefire in the Middle East increased dollar volatility. Currencies and interest-rate expectations were affected simultaneously.
Silver prices also moved in a lower range at the start of the week. Spot silver and related ETF prices showed a correction similar to that in stock prices. Simultaneous correction trends were observed in the gold and silver markets.
Market participants adjusted their positions ahead of the release of U.S. inflation data. Prices of precious metals and currencies fluctuated sharply around the release. Short-term volatility continued to increase.
In summary, precious metals and the dollar this week were simultaneously exposed to geopolitical factors in the Middle East and U.S. inflation data. The inflation indicators released going forward could trigger further volatility. Investors watched price movements before and after the release.
Sources: Reuters,Yahoo Finance,Investing.com News
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