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Inflation data boosts Fed's bet on interest rate cuts, gold prices remain stable around 3350
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Hello everyone, today XM Foreign Exchange will bring you "[XM Foreign Exchange Decision Analysis]: Inflation data boosts the Federal Reserve's bet on interest rate cuts, and gold prices remain stable around 3350." Hope it will be helpful to you! The original content is as follows:
On Wednesday (August 13, Beijing time), spot gold trading around $3,350/ounce, gold prices rose slightly on Tuesday. After U.S. inflation data maintained Fed rate cut expectations, people's attention turned to other key economic data to be released this week; U.S. crude oil trading around $63.12/barrel, oil prices fell on Tuesday, traders awaited U.S. Energy Information Administration's inventory report and began to pay attention to signs of possible decline in demand at the end of the summer driving season in early September.
Stock and Nasdaq Index hit record closing highs on Tuesday as news said inflation gains in July were basically in line with expectations, which strengthened bets on the Fed's interest rate cut next month.
The U.S. Labor Department said the Consumer Price Index (CPI) rose 0.2% month-on-month in July, while annual inflation was slightly lower than expected, which triggered calls from U.S. President Donald Trump to lower interest rates.
The shorter-term Treasury yields reflecting interest rate expectations fell, with interest rate futures showing that traders believe the Fed may cut interest rates by about 25 basis points in September at 88.8%.
Katherine Bordlemay, co-head of portfolio management for basic stock clients at Goldman Sachs Asset Management, said: "The CPI data is supportive for the stock market as a whole, and has received some good news. The Fed looks more likely to cut interest rates in September, and there may be more transitional inflation. My first guiding idea is to continue to be optimistic about the theme of large xmtraders.companies growing bigger. We continue to have confidence in giant technology and technology."
Alphabet's share price rose 1.2% because Perplexity raisedSend $34.5 billion in cash to acquire the xmtraders.company's Chrome browser. Intel climbed 5.6% after Trump said he met with CEO Tan Liwu on Monday and praised Chen Liwu, saying the meeting was "very interesting".
The Dow Jones Industrial Average rose 1.10% to 44458.61 points; the S&P 500 rose 1.13% to 6445.76 points; and the Nasdaq rose 1.39% to 21,681.90 points.
The quality of economic data remains a concern weeks after Trump fired the Bureau of Labor Statistics director as non-farm jobs were revised downward in the previous months. The market is paying attention to the dynamics of Trump's nominated Bureau of Labor Statistics Director E.J. Antoni and potential candidates for the Fed's top position. "It's still in the early stages of this process, and inflation data may begin to record some more direct tariff price increases, which will xmtraders.complicate the decision to cut interest rates," said John Velis, a macro strategist at NYCB. "The U.S. and China extended the tariff truce until November 10, avoiding heavy tariffs on each other's goods, which gave the market a sigh of relief. U.S. stocks have rebounded in recent weeks as tech stocks earnings, easing trade tensions and increased expectations for interest rate cuts.
Data from Bank of America Global Research shows that the largest amount of funds flowing into U.S. stocks last week were the largest in two years.
The Russell 2000, which tracks small xmtraders.companies, rose nearly 3%. The index tracking airline stocks rose 8.87%, the biggest single-day gain in more than a month, after data showed that air ticket prices rose 4% in July.
Bank stocks rose, with the S&P 500 rising 2.1% as analysts say a steeper yield curve will help banks make profits as banks can borrow at low prices and lend at higher interest rates.
CardinalHealth fell 7% after the drug distributor said it would acquire healthcare management xmtraders.company Solaris for $1.9 billion. Gold prices rose slightly on Tuesday, and after U.S. inflation data maintained Fed rate cut expectations, people's attention turned to other key economic data to be released this week. Spot gold was $3347.34 per ounce, up 0.1%.
The U.S. Consumer Price Index rose 0.2% last month after rising 0.3% in June. The Consumer Price Index rose 2.7% in the 12 months to July. Economists surveyed by Reuters expect CPI to rise by 0.2% month-on-month in July and 2.8% year-on-year. "Inflation data seems mixed, but supports rate cuts. Traders are cautious as we are at a critical moment, waiting for further economic indicators," said Bob Haberkorn, market strategist at RJO Futures.After the CPI data was released, traders maintained their bets on U.S. interest rate cuts in September and December.
Other data to be released this week include the U.S. producer price index, weekly unemployment claims and retail sales.
At the same time, the United States and China have extended the tariff truce by 90 days, avoiding the imposition of substantial tariffs on each other's goods.
U.S. gold futures for December delivery closed down 0.2% to $3,399 per ounce. Gold prices fell more than 2% on Monday after U.S. President Trump said on social media that he would not impose tariffs on imported gold bars. Reports of Washington imposing tariffs on imported 1 kilogram of gold bars have hit a record high on Friday.
Among other metals, spot silver rose 0.9% to $37.92 per ounce; platinum rose 0.9% to $1,338.73; palladium fell 0.5% to $1,129.57.
The above content is all about "[XM Foreign Exchange Decision Analysis]: Inflation data boosts the Federal Reserve's interest rate cut bet, and gold prices remain stable around 3350". It is carefully xmtraders.compiled and edited by the editor of XM Foreign Exchange. I hope it will be helpful to your trading! Thanks for the support!
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