Aug 13 2024: Gold prices fell slightly in Asian trading on Tuesday but remained close to record levels due to strong safe-haven demand driven by fears of an Iranian attack on Israel and anticipation of key U.S. inflation data this week.
Gold Price Movements and Market Influences
Spot gold decreased by 0.4% to $2,460.78 per ounce, while December futures fell 0.1% to $2,501.45 per ounce. Gold futures recently reached a record high of $2,517.10 per ounce, and spot prices stayed near their peak of $2,483.78 per ounce.
Safe Haven Demand Boosted by Middle East Tensions
The increased demand for gold is linked to concerns about a possible Iranian retaliation against Israel, following recent escalations in the region. This uncertainty has elevated gold’s status as a safe-haven asset.
U.S. Inflation Data in Focus
This week’s focus is on the U.S. consumer price index (CPI) data, expected to show a slight decline in inflation for July. This report may influence the Federal Reserve’s decision on interest rates, with markets anticipating potential rate cuts.
Precious and Industrial Metals
Other precious metals saw slight declines, with platinum futures down 0.7% to $942.60 per ounce and silver futures dropping 0.8% to $27.773 per ounce.
Copper prices also faced pressure, with benchmark futures falling 0.7% to $8,963.50 per ton. Investors are awaiting industrial production and retail sales data from China later this week for further insights into global copper demand.