- Waning inflation is helping to breathe new life into the gold market, pushing prices to a four-week high and testing some initial resistance at $1,940 an ounce.
Deflationary impulse for the US: used car prices post one of the largest declines in history in June 2023. https://t.co/ZCL0NaR6DH pic.twitter.com/Tl1kOepGX3Some economists and market analysts have said this is a surprising deflationary signal as the supply of used cars remains; however, the supply of new vehicles for sale is improving as demand weakens.
However, some analysts have said that weak inflation could mean that the July move could be the last in this tightening cycle. Expectations that the Federal Reserve's monetary policy is peaking have caused 10-year bond yields to fall back below 4% at the same time the U.S. dollar Index is seeing some significant weakness.
In comments to Kitco News, Hansen has said that gold needs to get back above $1,960 to attract new bullish momentum. "It seems gold bulls are feeling a little more confident, although $1,940 still poses a test, having been a notable area of support in late May and the first half of June," he said in a note Tuesday."We could just be seeing a corrective move after such a strong pullback from the highs in May, although a strong inflation number again tomorrow could send it lower once more."
Schneider added that while consumer prices in the U.S. may be falling, global inflation pressures remain elevated. She highlighted wage growth in the U.K. as a sign that global inflation remains a concern.