Gold slips on higher yields and a stronger dollar; likely to trade in $1890-$1950 range

economictimes.indiatimes.com:

gold closed with a weekly loss of around 1.40% at $1913.88 on buoyant yields and a firmer dollar as traders became concerned about the possibility of a return of inflation in the US amid a still resilient economy. Gold's weekly high in the week ending August 11 was $1946.81, while the weekly low was noted at $1911.73. The much-awaited US July CPI inflation report showed that US Core CPI posted the smallest back-to-back rise in two years.

Core CPI inflation rose 0.20% m-o-m for a second month. Headline CPI inflation also rose 0.20% m-o-m. Annual headline CPI inflation rose 3.20% y-o-y (June reading 3.30%) as against the median estimate of 3.30%, while core CPI inflation was up 4.70% y-o-y, which matched the forecast, and edged lower from June reading of 4.80%.

The inflation edged lower in July as used car prices fell 1.30% m-o-m, airfares dipped 8.1%, and medical care was down 0.20%. Supercore services data, which is closely watched by the Federal Reserve, fell 0.20% m-o-m but re-accelerated from 4% in June to 4.10% in July on a y-o-y basis mostly on base effects (July 2022 reading stood at 5.10%). Housing components and rent are likely to decline further in the coming months.