Daily Gold Market Report

Gold trades to the upside as markets await today’s consumer price report
Bloomberg says report will reveal a wave of disinflation

(USAGOLD – 8/10/2023) – Gold is trading to the upside this morning as the markets await today’s consumer price report. It is up $7.50 at $1924.50. Silver is up 18¢ at $22.88. Bloomberg economists say today’s numbers will reveal a wave of disinflation “driven mainly by the deteriorating economic landscape.” OCBC Forex strategist Christopher Wong told Reuters this morning that “Outlook for gold would regain shine when markets move in to price in greater probability of rate cuts and U.S. dollar softness. And this hinges on how entrenched the disinflation trend is.”

Market analyst James Hyerczk framed the inflation-gold–trader triangulation neatly in an overview posted at Forex Empire yesterday. “Navigating these waters teeming with unpredictability is challenging,” he says. “While certain Federal Reserve members hint at a cessation to the rate hikes, others postulate the necessity of more hikes to curb inflation. As all eyes turn to the imminent CPI revelation, gold and silver stand sentinel, mirroring the market’s faith, or the lack thereof, in the robustness of the economy.”

United States Inflation Rate
Line chart showing US inflation rate through July 2023
Chart courtesy of TradingEconomics.com

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