Although US inflation was in line with analyst expectations at 4.2 percent pa, the price of gold continued to slide and hit its lowest level in almost six months.
by Jörg Bernhard
The latest data showed that US consumer prices rose the most in three years in May. The main reason was the significantly higher energy prices as a result of the Middle East conflict. The markets’ attention now turns to the US producer price data (PPI) due this afternoon. Investors hope that this will provide further information about the US Federal Reserve’s future monetary policy; after all, producer prices are considered an important leading indicator for consumer prices. The geopolitical situation also remains tense. The US military announced yesterday that it had again attacked several targets in Iran during the night. The attacks came just hours after President Donald Trump announced further military strikes if a peace agreement was not reached. High inflation and military escalation would normally speak in favor of the crisis currency gold – but investors are currently selling due to the negative momentum and rising opportunity costs.
On Thursday morning, the price of gold fell. By around 7 a.m. (CEST), the most actively traded gold futures (August) had fallen by $30.70 to $4,102.60 per troy ounce.
Crude oil: further escalation in the Iran war
After Tehran announced the closure of the strategically important Strait of Hormuz, oil prices continued to rise. According to the Iranian military command, the closure applies to both oil tankers and merchant ships. The current inventory data from the USA reinforced the upward momentum. The US Energy Agency EIA reported that American crude oil inventories fell by 7.2 million barrels to 426.5 million barrels in the week ending June 5th. According to a survey, analysts had only expected a decline of four million barrels. Since the Iran War began on February 28, U.S. crude oil inventories, including strategic reserves, have fallen by a total of 79 million barrels.
On Thursday morning, the price of oil rose. By around 7 a.m. (CEST), the next due WTI future had increased in price by $1.13 to $91.16, while its Brent counterpart rose by $0.98 to $94.08.
Editorial team finanzen.net