New Rise in Gold Prices Amid Declining Inflation in the US

Gold prices recorded a slight rise in Wednesday’s trading, extending their gains for the fourth consecutive session, as investors assessed the prospects of reopening the Strait of Hormuz, while mediators intensified US-Iranian negotiations. Additionally, the latest US inflation data helped ease concerns about a near-term US interest rate hike.

Last week, US President Donald Trump expressed optimism that Iran would soon reach an agreement with the United States.

Subsequently, Iran announced that its deal with Oman was nearing completion, but then suddenly presented a list of demands to the United States, insisting that reopening the Strait of Hormuz was conditional on the US meeting Iran’s preconditions.

On the economic front, data released by the US Bureau of Labor Statistics on Wednesday showed that core consumer prices, excluding the more volatile food and energy components, rose by 0.20% month-on-month. On an annual basis, the core inflation rate fell for the second consecutive month to 2.50% in July.

The broader consumer price index also rose slightly by 0.10% in July month-on-month, in line with market expectations, compared to a 0.40% increase in June. The annual inflation rate also fell for the second consecutive month to 3.40% in July, down from 3.50% in June.

Despite the decline, consumer prices remain above their levels prior to the outbreak of the US-Iran war.