There has been a decline in core inflation from 3.4% to 3.3%. At 2:30 PM, the US producer prices are set to be announced. According to a survey published by Trading Economics among analysts, a slight increase from 2.2% to 2.3% year-on-year is expected. If there is a positive surprise, the yellow precious metal is likely to register its third consecutive weekly gain. Currently, the gain stands at 0.6%. Significant attention in the evening will be drawn to the Commitments of Traders report by the US regulatory agency CFTC. A week ago, this report showed a slight decline in optimism among both large speculators (Non-Commercials) and small speculators (Non-Reportables). Particularly interesting is that large speculators have reduced their short positions in gold futures to 38,600 contracts, the lowest level in over four years.
Crude Oil: Gains Amid Interest Rate Hopes
Yesterday’s inflation data from the US has boosted the fossil energy carrier to higher levels thanks to the prospect of an imminent interest rate cut. The FedWatch tool of the CME Group now indicates a probability of over 92% that US interest rates will be lower after the Federal Reserve’s meeting on September 18. A month ago, this probability was only 65%. Additionally, the US service company Baker Hughes, operating in the oil sector, will release its weekly report on North American drilling activities at 7:00 PM. Any surprises in this report could impact the trading trend for the upcoming week.
On Friday morning, oil prices showed slightly higher quotes. By around 7:45 AM (CET), the nearest WTI future increased by $0.32 to $82.94, while its Brent counterpart rose by $0.21 to $85.61.