Friday 15/Aug/2025 – 10:13 AM
Gold prices decreased today, Friday, on the way to registering a weekly decline, after US inflation data showed that they are higher than expected, and this led to the decline in expectations that the Federal Reserve (the US Central Bank) reduce interest rates by 50 basis points in September.
Gold prices have declined globally since the beginning of the week
Gold fell in instant transactions 0.1% to 3333.58 dollars an ounce by 01:20 GMT, and the yellow metal decreased 1.9% since the beginning of the week until now.
US gold futures decreased December delivery 0.1% to $ 3378.90.
The US Department of Labor announced that the producers’ price index increased by 3.3% in July on an annual basis, surpassing expectations that were indicating an increase of 2.5%. Weekly unemployment requests also came less than expectations at 224,000 requests.
These numbers come after previous data issued on Tuesday that showed a slight rise in consumer prices in July, which had strengthened expectations by reducing interest.
Although the producers’ price index did not completely abolish the probability of reducing the interest, it reduced the expectations that the reduction be large.
It is noteworthy that gold often flourishes in the low interest rate environment because it does not generate returns, which makes it more attractive to investors in these circumstances.
