Key Points
Comex December gold future slid 1.55% through the week as the contract finished around $1916.50, and spot gold was at $1889 an ounce, at its weakest level in five months, pushed down by strengthening USD and surging UST yields amid growing bets for higher for longer interest rates from US Fed from the traders..
Last week's losses came after a spate of strong economic data caused investors to cut down expectations of rate cuts which drove up government bond yields as there is nearly 91% chance of the Fed holding rates at current levels at its September meeting..
The inflation at the factory level in July firmed at the fastest pace since January causing concern over the stickiness of inflation, Consumer spending rose as retail sales increased by 0.73% in July, The latest residential data for July showed that housing permits increased by 0.07%, housing starts increased by 3.86%, and housing completions decreased by -11.82%,.
The coming weeks would be important as the Chinese central bank is expected to throw some surprises, which should see some recovery in Gold amid broader risk-off sentiments..
From the US the Federal Reserves annual Jackson Hole symposium returns as the key event this week as Chair Powell kicks off the event with an economic outlook speech on Friday..
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