23.10.2021

Gold rises in price ahead of the publication of data on inflation in the United States

The cost of gold rises on Friday morning on the eve of the publication of data from the US Department of Labor on inflation in the country, according to trading data.

As of 08.49 Moscow time, the price of December gold futures on the New York Comex stock exchange grew by $ 2.03, or 0.15%, to $ 1298.53 per troy ounce. December silver futures rose 0.16% to $ 17.29 an ounce.

Investors are awaiting the publication of US inflation data. Analysts believe that consumer prices in the country in September in annual terms increased by 2.3%, and in monthly terms – by 0.6%. The corresponding press release of the country’s Ministry of Labor will be published on Friday at 15.30 Moscow time.

The growth rate of prices is an important indicator for the US Federal Reserve System (FRS) in assessing the level of development of the American economy. The regulator focuses on inflation, making a decision to raise or maintain the level of interest rates. So, following the results of the September meeting, the FRS kept the interest rate at the level of 1-1.25% per annum due to the fact that the inflation rate in the country still did not reach the target level of 2%. The next Fed meeting is scheduled for October 31 – November 1.

At the same time, most analysts predict that the Fed may raise the rate at the December meeting. According to the CME Group as of October 13, investors estimate the likelihood of a rate hike to 1.25-1.5% following the December meeting at 86.7%. In addition, the likelihood of keeping the rate at the current level is estimated at 12%, and the rate increase to 1.5-1.75% – at 1.3%.

Producer prices in the US in September rose by 2.2% in annual terms, compared with the expected growth of 2%. On a monthly basis, the figure rose 0.4% versus an expected 0.2%, according to the country’s labor ministry released on Thursday. Analysts believe that prices have risen primarily due to a sharp rise in gasoline prices in connection with the disruption of a refinery in Texas during hurricanes in the United States last month.

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