Gold Spot Price AUD $6062.03

Silver Spot Price AUD $90.01

Platinum Spot Price AUD $2443.06

The United States is preparing for two important inflation reports this coming week, with the Producer Price Index due first, followed by the Consumer Price Index. Together, these figures could play a major role in determining whether the Federal Reserve raises interest rates again in September.

Annual producer inflation is currently sitting at 4.7%, while consumer inflation is running at 3.4%. Although both measures eased in the previous month, they remain well above the Federal Reserve’s preferred level. Producer prices are particularly important because higher costs for manufacturers and wholesalers can eventually be passed through to consumers.

If the new figures show inflation continuing to fall, the Federal Reserve may have room to leave rates unchanged and wait for more data. However, another strong result would increase pressure for a rate rise, particularly while energy costs, tariffs and manufacturing expenses remain elevated.

Australia is facing a similar problem. Headline inflation recently eased to 3.5%, but it remains above the Reserve Bank’s 2% to 3% target range. Australian households may therefore find that US inflation has more local relevance than expected. Higher US rates can influence global borrowing costs, currency markets and the Australian dollar, while persistent inflation overseas can also feed into the price of imported goods.

Gold has pulled back following its recent upward breakout and is now sitting just above its 50-day moving average. That small red line on the chart is becoming increasingly important. If gold holds above it and begins moving higher again, the pullback may prove to be a healthy pause within the broader upward trend.

If gold falls below the 50-day moving average, however, traders may become more cautious. With major inflation figures arriving next week, the yellow metal may not have to wait long before choosing its next direction.

This article is general market commentary only and should not be relied upon as personal financial advice. Consider the information carefully, conduct your own independent assessment and seek professional advice where appropriate before making any investment decision.

Enjoy today’s charts

Gold daily chart, with 50MDA