Gold Prices Tumble Amid US Economic Data and Oil Price Volatility
World gold prices have been experiencing volatile fluctuations due to various opposing market factors. On August 18, spot gold prices retreated to around $4,390.4 per ounce, down 0.58%, while silver prices decreased by 1.17% to about $64.89 per ounce.
The decline was short-lived as the US released data showing that the housing market continued to face difficulties, with a 2.3% decrease in apartment sales index in July, contrary to analysts' forecast of an increase of 0.3%. This indicates that high mortgage interest rates and expensive house prices are limiting buyers' participation in the market.
Investors remain cautious about the possibility of the US Federal Reserve raising interest rates in September, with a current probability assessment by the market at around 30-35%. However, US government bond yields continue to exert downward pressure on gold, increasing its opportunity cost and limiting its breakout potential.