Gold Hits 9-Week High
Gold prices strengthened again during Monday's trading (Aug 10), touching a nine-week high. Spot gold rose approximately 0.8% to US$4,376.56 per troy ounce, while US gold futures closed up about 0.5% at US$4,419.70.
Bullish momentum remains the primary driver. The sharp rise since Friday has triggered "fear of missing out" (FOMO) among some investors, particularly as gold nears the psychological US$4,500 level.
Gold sentiment is also supported by weak US labor data. July's Nonfarm Payrolls showed an unexpected decline, causing the market to scale back expectations that the Federal Reserve would need to raise interest rates soon.
Additional support comes from China; the country's central bank increased its gold purchases in July, recording its largest reserve addition since October 2023. This demand has further bolstered investor interest in the precious metal.
Market focus now shifts to the US CPI on Wednesday and PPI on Thursday. July inflation is expected to ease to around 3.4% year-on-year, down from the previous 3.5%. Data coming in lower than expected could strengthen the likelihood of gold extending its gains.
Newsmaker Analysis: Gold momentum remains bullish, with the US$4,400–US$4,500 range serving as the next key target. However, the CPI report will be a crucial test. Cooling inflation could pave the way to US$4,500, whereas hotter-than-expected data could boost the dollar and yields, potentially triggering profit-taking in gold.
Source: Newsmaker.id
