Gold recorded a fall from the 'hopeful' position of around $2,450 after experiencing a high upward movement since the beginning of August and now it is trying to bounce back due to the growing geopolitical concerns in the Middle East.
At exactly 9.30 am, the price of gold was at $2,450.09, which is up by 0.9% since it opened at the beginning of Asian trading this morning.
However, the US Consumer Price Index (CPI) data release managed to drag the price up to $2,480 before falling to a lower position around $2,440.
US CPI for July rose by 0.2% on the month in line with estimates from a 0.1% decline in June.
On an annual basis, it met forecasts by reaching 2.9% compared to the previous 3.0%.
Looking at the graph more broadly, gold had a higher rally following the release of the US Producer Price Index (PPI) data which showed an overall easing in inflationary conditions and increased expectations that interest rates will be cut.
Gold's momentum failed to be maintained when the CPI data was published yesterday.
From a geopolitical sentiment, the attack by Iran will continue to help the price of the yellow metal rise until it reaches its limit.
Moreover, it has reflected a significant fall as panic selling activity erupted following the release of Non-Farm Payrolls (NFP) figures in early August.
