Gold Rises on Weakening Dollar Ahead of US Inflation Data

9.13.22 - Coddled Wall St. in for Rude Awakening

Gold last traded at $1,702 an ounce. Silver at $19.35 an ounce.

NEWS SUMMARY: Precious metal prices eased back Tuesday after rising inflation boosted the dollar. U.S. stocks fell sharply on the unexpected rise of inflation despite falling gas prices.

Yahoo Finance--"Gold gained as the dollar extended its retreat from a record high ahead of US inflation data that could bear on the Federal Reserve's monetary policy.

The metal rose as the greenback slipped for a second day, providing relief to commodities priced in the currency. Bullion has found a floor near $1,700 an ounce this month after slumping in August on the dollar's rally....

'A bit of dollar weakness on top of recent short selling by funds was all it took to get the ball rolling,' said Ole Hansen, head of commodity strategy at Saxo Bank A/S.

Economists forecast the August US inflation would slow for the second month in a row to 8.1%, potentially easing pressure on the US central bank to keep aggressively hiking rates. Still, officials last week seemed to point to another super-sized increase of 75 basis points in September. Fed Governor Christopher Waller said Friday he favored 'another significant increase."