Gold prices under pressure on soaring US dollar

Gold prices finished in the red today, Sept. 12, coming under pressure as the US dollar climbed amid market anticipation of US consumer inflation data tomorrow.

Bullion for December delivery contracted by 0.60%, or $12.10, to $1,935.10 per ounce, bringing its losses since the end of last week to about 0.40%.

On the other hand, the US dollar index, which measures the performance of the US currency against a basket of six major currencies, grew by 0.15% to 104.75 points at 08:45 pm Makkah time, as investors continued to seek safe havens.

Global markets are awaiting the release of the US Consumer Price Index (CPI) August data, tomorrow, Sept. 13, seeking more evidence about the Federal Reserve’s possible decision on interest rates in the near future.

Bob Haberkorn, senior market strategist at RJO Futures, said investors are exiting the gold market at the present time, awaiting the results of the expected economic data. They are also seeking to buy bullion at a lower price as the yellow metal remains somewhat a safe bet, Reuters reported.

In terms of economic data, the US Small Business Confidence Index showed today that overall confidence among small business owners at its lowest for the first time since April, with elevated inflation rates and labor shortages still topping the list of challenges hindering economic activity.

In August, the index shed 0.6 points to a score of 91.3, after snapping an eight-month high of 91.9 in July. For the 20th straight month, the index remained below the 49-year survey average of 98 points.