Editor’s Note
This article reports on recent declines in precious metal prices, with gold hitting a two-week low due to a stronger US dollar and rising interest rates. The domestic gold price in Japan is noted as 12,999 yen, reflecting a daily decrease.
Gold prices have fallen to a two-week low, influenced by a stronger US dollar and rising US interest rates. The current domestic announced price for gold is 12,999 yen, down 56 yen from the previous day.
Platinum, on the other hand, has risen significantly. The domestic announced price is 5,681 yen, up 187 yen from the previous day.
The silver price remains stable at 157 yen with no change. Palladium has seen a slight decline, with the current price at 4,768 yen, down 6 yen from the previous day.
A key point to watch going forward is the Personal Consumption Expenditures (PCE) Price Index to be released this week. The PCE Price Index is an indicator that shows price trends for goods and services actually purchased by American consumers, essentially serving as a “gauge of consumer price trends” and an important data point for measuring inflation.
The Federal Reserve (Fed) bases its monetary policy decisions on this index, so the impact of PCE data on the market is significant.
If inflation is higher than expected, the likelihood of the Fed raising interest rates increases, which in turn leads to higher interest rates. When interest rates rise, the cost of holding gold also increases, making gold relatively less attractive and tending to push its price down.
Conversely, if inflation falls below expectations, expectations for rate cuts increase, and interest rates may decline. In this case, the cost of holding gold becomes lower, making it easier for gold prices to rise.