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Last Week's U.S. Economic Data Suppressed Gold Prices / The U.S. Will Announce Cuts To The Debt Buying Schedule At The Earliest In November

Last Week's U.S. Economic Data Suppressed Gold Prices

Last week, there were some better-than-expected economic data in the United States (for example, the CPI in August and the US retail sales data), which caused the dollar to rise. The price of gold was falled for this. The market believes that if the economic data continues to be strong, the Federal Reserve It will begin to shrink its bond purchase program faster than expected, which means that funds will begin to flow out of the financial system and have an impact on the price of gold. In addition, if economic data continues to be strong, interest rates will increase faster than expected. This is not good news for gold. When interest rates rise, gold prices tend to fall. Spot gold opened at $1,787.94 per ounce last week, the highest was measured at $1806.83 per ounce, the lowest was tested at $1,745.21 per ounce, and finally closed at $1754.37 per ounce, down $33.57, or 1.87%.

The U.S. Will Announce Cuts To The Debt Buying Schedule At The Earliest In November

Faced with the Delta virus, the United States had an average of 150,000 new diagnoses per day last week. Adding to the fact that the United States has been hit by two hurricanes and caused serious economic losses recently, it is hard to imagine that the Federal Reserve has announced a reduction in debt purchases at this stage. The Fed may only tell the market that it has discussed the issue in depth at the meeting and has not yet finalized the decision. The market generally believes that the Fed will not announce the timetable for buying cuts until the November interest rate meeting at the earliest.

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