Gold Prices Stagnate Ahead of Crucial US Inflation Data
Gold and silver prices are treading water as market participants await important United States inflation data that could influence expectations regarding the Federal Reserve’s policy direction.
According to Refinitiv, gold prices closed at US$4,366.84 per troy ounce on Tuesday (11/8/2026), down 0.49%. This decline snapped a two-day winning streak for the precious metal. On Wednesday (12/8/2026) at 06:47 WIB, the price was nearly flat, edging up a marginal 0.06% to US$4,369.78 per troy ounce.
“The market is waiting for this week’s inflation data to get confirmation that inflation is still under control,” said Peter Grant, Vice President and Senior Metals Strategist at Zaner Metals, as quoted by Refinitiv. He added that a slowdown in annual inflation would continue to support gold prices.
The US Consumer Price Index (CPI) data, due for release on Wednesday, and the Producer Price Index (PPI) on Thursday, are expected to be key determinants for monetary policy expectations. Previously, weak US employment data for July had reduced market expectations for a Federal Reserve interest rate hike the following month, a condition that sent gold prices soaring by 2.4% in a single day.
“Gold remains in demand after last week’s disappointing labour data reduced expectations for a rate hike in September,” Grant noted. However, based on the CME FedWatch Tool, market participants still see a roughly 50% chance of a rate hike in September, while the probability of a hike in December stands at 79%.
Cleveland Federal Reserve President Beth Hammack stated on Monday that it is time to begin raising interest rates gradually to avoid the need for sharper increases later. Higher interest rates typically make gold less attractive as the metal offers no yield.
On the geopolitical front, US President Donald Trump responded to Iran’s demands regarding a peace deal by presenting his own terms. Trump demanded that Iran provide compensation for those killed in wars, attacks, and protests.