After four sessions of gains, gold is trading lower in mid-European trading today, Wednesday, August 6, with the US dollar stabilizing and a wave of profit-taking in the yellow metal, which tested its highest levels in two weeks yesterday, Tuesday, at $3,390 per ounce. This coincided with the absence of US economic indicators during today’s session. The yellow metal is trading down about 0.62% at $3,366 per ounce, while silver is trading at $39.06 per ounce, down 0.56%.
The US Dollar Index is trading slightly down 0.10% at 99.43. Markets are currently pricing in, according to the CME FedWatch tool, a rate cut at the July meeting of more than 85%, compared to less than 50% before the jobs figures last Friday. US President Donald Trump announced on Tuesday that he would announce a short-term replacement for Federal Reserve Governor Adriana Kogler, who resigned on Friday, in addition to his selection of a future Fed chair.
In a related development, Bloomberg reports that Shanghai Stock Exchange warehouses received an unprecedented inflow of gold in a single month, amounting to 36 tons of bullion under futures contracts, as investors exploited the gap between the physical and futures markets.
Platinum, meanwhile, is trading at $1,389, down 1.57%, while palladium is down 1.68%, trading at $1,256.