DIGIVESTASI - Gold prices experienced a slight decline ahead of the scheduled release of U.S. economic data this week. Market participants are watching closely to see whether the data will reinforce speculation that the U.S. central bank, the Federal Reserve (The Fed), will soon shift to a more accommodative monetary policy. According to a Bloomberg report on Monday (August 12, 2024), spot gold prices edged down by 0.10% to $2,428.92 per troy ounce. Meanwhile, Comex gold prices also fell by 0.23% to $2,467.80 per troy ounce. Bullion was trading near $2,430 per ounce in Asia after dropping by 0.5% over the past week.

Market participants are now awaiting the release of the Consumer Price Index (CPI) report, which is set to be announced on Wednesday, with expectations of a 0.2% increase from June. However, this movement is not expected to affect the Fed's plan to lower the benchmark interest rate next month, as the central bank is also considering the need to avoid the risk of a recession.

Federal Reserve Governor Michelle Bowman stated last Saturday that she still sees the risk of higher inflation and continued strength in the labor market. Increases in borrowing costs usually have a negative impact on precious metals, as gold does not offer interest yields. The latest data from the Commodity Futures Trading Commission (CFTC) shows that hedge funds trading Comex gold futures have reduced their bullish positions on gold, reaching the lowest level in five weeks.

So far this year, gold prices have risen by approximately 18% and remain close to their record high reached last month. The metal's price has been driven by expectations of interest rate cuts, strong central bank purchases, high consumer demand from China, and increased safe-haven buying due to conflicts in the Middle East and Ukraine. Meanwhile, silver prices on the Comex fell by 0.5% to $27.45 per troy ounce, while platinum prices also weakened by 0.33% to $922.39 per troy ounce.

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