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Gold Climbs as US Inflation Data Takes Center Stage this Week

Gold bars are pictured at the plant of gold and silver refiner and bar manufacturer Argor-Heraeus in Mendrisio, Switzerland, July 13, 2022. REUTERS/Denis Balibouse/File Photo
Gold bars are pictured at the plant of gold and silver refiner and bar manufacturer Argor-Heraeus in Mendrisio, Switzerland, July 13, 2022. REUTERS/Denis Balibouse/File Photo
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Gold Climbs as US Inflation Data Takes Center Stage this Week

Gold bars are pictured at the plant of gold and silver refiner and bar manufacturer Argor-Heraeus in Mendrisio, Switzerland, July 13, 2022. REUTERS/Denis Balibouse/File Photo
Gold bars are pictured at the plant of gold and silver refiner and bar manufacturer Argor-Heraeus in Mendrisio, Switzerland, July 13, 2022. REUTERS/Denis Balibouse/File Photo

Gold prices rose on Monday, supported by a retreat in the dollar as investors look forward to US inflation data that could sway the Federal Reserve to raise interest rates later in the year.
Spot gold jumped 0.5% to $1,927.39 per ounce by 0614 GMT, while US gold futures rose 0.4% to $1,950.80.
Gold should be supported above the $1,900 level if we see the US dollar continue to decline on bets that the Fed are indeed done with their tightening cycle, said Matt Simpson, a senior analyst at City Index, Reuters said.
Gold had found support around its 200-day moving average, an important technical level not easy to crack, he said, adding that if US inflation undershoots that could weigh further on the dollar.
The US Consumer Price Index (CPI) data for August due on Wednesday is expected to shape the Fed's interest rate decisions this year.
KCM Trade Chief Market analyst Tim Waterer said the inflation numbers could creep to the upside courtesy of ascending energy prices, which will keep alive the odds of another 25-basis-point move by the Fed come November.
Ahead of their policy-setting meeting this month, Fed policymakers have been pretty clear about two things: They are not itching to raise interest rates, but few among them are ready to declare victory, either.
The US dollar dropped 0.5% and benchmark 10-year bond yields shed 0.3%, making non-yielding bullion more attractive for overseas buyers.
"The precious metal will likely be relying on a pullback in yields in order to again challenge the $1,950 level," Waterer said in a note.
Spot gold may retest a resistance at $1,930 per ounce, according to Reuters technical analyst Wang Tao.
Elsewhere, spot silver jumped 0.7% to $23.07 per ounce, platinum added 0.7% to $898.55 after a 7% decline last week, and palladium edged 0.7% higher to $1,206.21.

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GCC Signs Landmark Electricity Market Connection with Iraq

Deputy Governor of the Eastern Province oversees the signing of a contract for the implementation of the project of linking the Gulf Electricity Market with Iraq (SPA)
Deputy Governor of the Eastern Province oversees the signing of a contract for the implementation of the project of linking the Gulf Electricity Market with Iraq (SPA)
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GCC Signs Landmark Electricity Market Connection with Iraq

Deputy Governor of the Eastern Province oversees the signing of a contract for the implementation of the project of linking the Gulf Electricity Market with Iraq (SPA)
Deputy Governor of the Eastern Province oversees the signing of a contract for the implementation of the project of linking the Gulf Electricity Market with Iraq (SPA)

The Gulf Cooperation Council (GCC) countries signed on Wednesday a contract to implement a project linking the Gulf electricity market with Iraq. The project aims to strengthen energy security and will allow the GCC states to supply Iraq with approximately 3.94 terawatt-hours of electricity annually at competitive prices.
The signing ceremony took place at the Gulf Electricity Interconnection Authority headquarters in Dammam (eastern Saudi Arabia), under the patronage of Prince Saud bin Bandar bin Abdulaziz, Deputy Governor of the Eastern Province.
The event also marked the inauguration of an upgrade to the control center systems of the Gulf Electricity Interconnection Authority. The ceremony was attended by the Authority’s CEO, Eng. Ahmed Al-Ibrahim, and the CEO of the Gulf Laboratory Company, Eng. Saleh Al-Omari.
The Deputy Governor launched the upgraded control center systems for the electricity interconnection network, designed to improve the efficiency and flexibility of electricity systems in addressing both current and future challenges.
The upgrade also enhances cybersecurity by adopting advanced technologies that offer high levels of protection against cyberattacks and growing threats, ensuring safe and efficient operations. This initiative is expected to contribute to improved grid stability, boost operational capacity, and support the transition to clean energy.
Prince Saud noted that the project linking Iraq to the Gulf electricity market will help ensure a sustainable energy supply, facilitate local projects, and enhance the stability of Iraq’s electrical grid. This will reduce reliance on costly traditional energy sources and increase the efficient use of available resources.
He added that the project is considered one of the key strategic initiatives that foster economic and social cooperation between the GCC and neighboring countries.
For his part, Al-Ibrahim said that since its launch, the project has successfully prevented any partial or total blackouts in GCC electricity networks by providing immediate emergency support. The interconnected grid, which spans over 1,000 kilometers from Kuwait to Oman, has facilitated more than 2,800 instances of power support since operations began, including over 50 cases of renewable energy loss.
He revealed that the project has so far saved approximately $3.6 billion in costs, compared to the project’s investment and operational expenses, which totaled around $1.5 billion.