Gold Prices Dip Ahead of Key Inflation Data, Silver and Platinum Rise

Gold prices fell 0.7% to $2,344.53 per ounce on May 13, 2024, as investors awaited crucial US inflation data. The data, to be released on Tuesday and Wednesday, may influence the Federal Reserve's interest rate decisions.

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Gold Prices Dip Ahead of Key Inflation Data, Silver and Platinum Rise

Gold Prices Dip Ahead of Key Inflation Data, Silver and Platinum Rise

On May 13, 2024, gold prices experienced a decline as investors awaited crucial US inflation data that could influence the Federal Reserve's decision on interest rates. Spot gold fell by 0.7% to $2,344.53 per ounce, while US gold futures dropped by about 1% to $2,350.80. Despite this dip, experts expect gold prices to rise to $2,350 after dipping to $2,338.

Why this matters: The upcoming inflation data releases have significant implications for the Federal Reserve's interest rate decisions, which in turn can affect the overall economy and financial markets. The trajectory of gold and other precious metal prices can also impact investor confidence and global trade.

Markets are pricing in a 65-67% chance of a rate cut at the Federal Reserve's September meeting. Pranav Mer, VP - Research (Commodity & Currency) at BlinkX and JM Financial, stated, "Any signs of cooling inflation would push those bets higher, but a higher reading would push back rate cuts expectation to possibly November meeting."

The US is set to release the producer price index (PPI) data on Tuesday, followed by the consumer price index (CPI) on Wednesday. A Reuters poll suggests that core consumer prices are expected to increase by 0.3% in April, down from the 0.4% rise recorded in March, which could result in a decrease in the annual rate to 3.6%.

In the realm of precious metals, spot silver saw a 0.4% increase to $28.27 per ounce, while platinum rose by 0.9% to $1,002.65 and palladium experienced a 0.5% uptick to $982.75. Despite a structural deficit anticipated for platinum, palladium, and rhodium, Metals Focus predicts a decline in their average prices this year.

As of 9 a.m. ET on May 13, 2024, the price of gold traded at $2,347.41 per troy ounce, down 0.75% from the previous day but up 13.60% from the beginning of the year. The lowest trading price within the last 24 hours was $2,338.56 per ounce, while the highest gold spot price was $2,375.77 per ounce. Silver prices opened at $28.35 per ounce, down 0.14% from the previous day but up 18.47% since the beginning of the year.

The upcoming US inflation data releases on Tuesday and Wednesday will be closely watched by investors and analysts, as they could provide crucial insights into the Federal Reserve's potential actions regarding interest rates. The outcome of these reports may significantly impact the trajectory of gold, silver, and other precious metal prices in the near future.

Key Takeaways

  • Gold prices fell 0.7% to $2,344.53/oz ahead of US inflation data.
  • Experts expect gold to rise to $2,350 after dipping to $2,338.
  • Markets predict 65-67% chance of a rate cut at the Federal Reserve's September meeting.
  • US inflation data releases on Tuesday and Wednesday will impact gold prices.
  • Precious metal prices may rise or fall depending on inflation data and interest rate decisions.