From The Rio Times · Diego Fernández · · 2m
Gold Slips as Dollar Firms Before US CPI
Dollar strength pushes gold down ahead of US inflation data.
In brief
Dollar strength pushes gold down ahead of US inflation data. Gold fell 0.5% to $4,170 an ounce as the dollar index rose 0.19% to 102.41 before Wednesday's US CPI report. Originally reported by The Rio Times.
Wall Street Pauses Near Records
The S&P 500 closed at 7,807.24, down 0.06%, while the Dow rose 0.38% and the Nasdaq fell 0.44%.
Dollar Index Rises 0.19%
The dollar index rose 0.19% to 102.41 as US Treasury yields climbed to 5.24%.
Gold Slips 0.5%
Gold slipped about 0.5% to roughly US$4,170 an ounce as a stronger dollar and elevated yields weighed on the metal.
US CPI Data Approaches
US consumer prices for September arrive on Wednesday 14 October with a consensus of 3.7% year on year versus 3.4% before.
Fed Hike Odds
Polymarket traders price a 25-basis-point Fed hike at 19.5% for October and 75.5% for December (as of 11:13 pm ET, 12 October).
Brazil Exposed to Dollar Pressure
A firmer dollar and higher US yields tighten financial conditions for Brazil, increasing pressure on the real and complicating the Selic outlook.
Core CPI Expected to Cool
Core CPI is expected at 0.2% month on month, cooling inflation expectations ahead of Wednesday's US CPI report.
Japan Machinery Orders Rebound
Japan's August machinery orders are expected to rebound 3% after a 3.7% drop, signaling firm capital spending.
Brazil Service Sector Growth
Brazil's service sector growth is expected at 0.9% this week, a slight decline from the previous week.
US Inflation Data Impact
A hotter-than-expected US inflation reading could lift yields, strengthen the dollar, and pressure equities and emerging-market currencies.
Market Reaction to Data
The S&P 500 rose 0.29% with 9 of 15 names advancing, indicating cautious optimism ahead of US CPI.
What to Watch Next
Wednesday's US consumer prices (CPI) for September at 08:30 ET will be the main catalyst for Fed pricing decisions.
The main idea
Gold fell 0.5% to $4,170 an ounce as the dollar index rose 0.19% to 102.41 before Wednesday's US CPI report.
