Decline in Gold Prices
Global gold prices experienced a noticeable decline during Monday’s trading session,
as investors await key U.S. inflation reports that may shed more light on the timing of the first interest rate
cut by the Federal Reserve.
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The U.S. Producer Price Index (PPI) data is expected to be published on Tuesday,
followed by Consumer Price Index (CPI) data on Wednesday.
Experts anticipate an increase in the core consumer price rate by 0.3% for the month,
compared to 0.4% in March, leading to a decrease in the annual rate to 3.6%.
Yen
Continued decline of the Japanese Yen:
The Japanese yen weakened in the Asian market on Monday against a basket of major and minor currencies, deepening its losses for the second consecutive day against the U.S. dollar, recording its lowest level in two weeks. This movement occurred amidst weak trading at the start of the new week. The markets are anticipating the release of U.S. inflation data for April in the coming days, along with data on Japan’s economic growth in the first quarter of the current year. These data are expected to provide a new assessment of the outlook for interest rates in the U.S. and Japan this year.
Inflation
Inflation rise in China:
According to data released by China’s National Bureau of Statistics over the weekend, figures indicate an increase in the consumer price index in the People’s Republic of China during the past April, after a slowdown the previous month. According to the data, the consumer price index (general inflation rate in China) grew by 0.3% in April on an annual basis, while expectations were for a growth rate of only 0.2%. April’s reading was better than the previous March in China, where it registered a growth of 0.1%. On the other hand, China recorded growth in the consumer price index by 0.1% in April compared to March on a monthly basis, while expectations indicated a decrease in inflation in the People’s Republic of China by 0.1%. China experienced a contraction in the inflation rate of 1.0% in the previous March.
Decline in Gold Prices