Gold Price Today, August 14: Gold prices traded largely flat on Friday but were on track to post a modest weekly gain, marking their third weekly rise in the past four weeks. Bullion was supported by softer-than-expected US inflation data, which strengthened expectations of Federal Reserve rate cuts, while a stronger US dollar capped the upside.
As of 5:55 am IST, spot gold was flat at USD 4,349.04 an ounce. Prices had climbed above the USD 4,400 mark in the previous session before retreating as investors booked profits. Despite the pullback, gold remained on track for a slight weekly gain.
Spot silver also traded largely flat at USD 64.39 an ounce, but was on track to gain more than 1 per cent for the week.
What supported gold this week?
Gold prices found support from US inflation data released this week. US consumer prices rose 3.4 per cent in the 12 months through July, easing from 3.5 per cent in June and in line with economists’ expectations. Meanwhile, the US Producer Price Index was unchanged in July as a decline in goods prices offset a rise in services costs, suggesting that inflationary pressures could persist.
Softer inflation data strengthened expectations of Federal Reserve rate cuts or of maintaining current rates, reducing the opportunity cost of holding non-yielding assets such as gold.
Expectations of a rate hike at the Fed’s September FOMC meeting also fell sharply to around 35 per cent, from about 65 per cent earlier in the week, as CME’s FedWatch Tool.
What capped the upside in bullion?
The upside in bullion was limited by a stronger US dollar. The dollar index, which measures the greenback against a basket of six major currencies, was up around 0.4 per cent for the week, putting pressure on gold prices.
A stronger dollar generally weighs on gold as it makes the metal more expensive for holders of other currencies and reduces its appeal.
Focus shifts to US data, US-Iran developments
Investors will now turn their attention to key US economic data due next week, particularly the minutes of the Federal Reserve’s latest meeting and weekly jobless claims. The data could provide further clues on the health of the world’s largest economy and the Fed’s interest-rate trajectory, offering direction to bullion prices.
Beyond economic data, investors will also closely monitor developments in the Middle East.
US Secretary of Defense Pete Hegseth said the United States could maintain its blockade on Iran “indefinitely”, while US Vice President JD Vance said the main goal of the war was to ensure Gulf countries continued to send oil and gas to the global economy and maintain energy price stability.
