Gold and silver are trading lower following hotter-than-expected US March inflation data.
Portfolio Pulse from Benzinga Newsdesk
Gold and silver prices have declined in response to the US March inflation data, which was higher than anticipated.
April 10, 2024 | 1:13 pm
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NEGATIVE IMPACT
The price of GLD, a gold-backed ETF, is likely to decrease in the short term due to higher-than-expected US inflation data for March.
Gold is often seen as a hedge against inflation. However, when inflation data is higher than expected, it can lead to speculation about increased interest rates, which is generally negative for gold prices. As GLD is a gold-backed ETF, its price is directly impacted by the fluctuations in gold prices.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
The price of SLV, a silver-backed ETF, is expected to decline in the short term due to the unexpected rise in US inflation data for March.
Similar to gold, silver prices are affected by inflation data. The higher-than-expected inflation data suggests potential for increased interest rates, which can negatively impact silver prices. Since SLV's value is closely tied to silver prices, it's likely to experience a short-term decrease.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 90