1911 Gold Corporation (TSXV: AUMB; OTCQX: AUMBF)
1911 Gold is Manitoba’s Gold Standard - Ready, Permitted and High-Grade 1911 Gold is an Emerging Gold Producer, with Significant Cash Flow Generation and District-Scale Growth Potential
The precious metals market reached a key turning point this week, as Comex gold futures briefly touched $4,502.70 per ounce during intraday trading on Wednesday, driven by July U.S. inflation data that came in fully in line with expectations — marking the first time in nearly two months that gold has broken through this major psychological level.
Inflation Data Eases Pressure on Fed Policy
Data released by the U.S. Bureau of Labor Statistics showed that the Consumer Price Index rose 3.4% year-over-year in July and 0.1% month-over-month, while core CPI slowed to 2.5% year-over-year — the lowest reading since March 2021. The figures were exactly in line with market consensus, marking the second consecutive month of moderating inflation.
The report was widely seen as a key policy reference ahead of the Fed’s September meeting. After the data release, interest rate swap pricing showed that the probability of a September rate hike edged down to about 45%, from roughly 47% previously, while October hike odds also declined. Seema Shah, Chief Global Strategist at Principal Asset Management, noted that combined with last week’s unexpectedly negative nonfarm payrolls reading, this CPI report should help cool rate-hike expectations. However, she also cautioned that inflationary risks stemming from the ongoing closure of the Strait of Hormuz — with its potential to drive energy prices higher — should not be overlooked.
Technical Resistance Still Ahead for Gold Prices
On the tape, Comex December gold futures successfully broke through the $4,500 level, though spot gold encountered some profit-taking pressure after touching around $4,438. Technical analysts pointed out that gold has now recorded seven consecutive daily candles with higher highs and higher lows, indicating strong short-term momentum. That said, analysts also reminded that the Fed will receive another round of inflation and jobs data before its September meeting, and a single report is not enough to lock in the policy path. The battle between bulls and bears around the $4,500 level is likely to continue.
On the geopolitical front, negotiations between the U.S. and Iran over reopening the Strait of Hormuz remain deadlocked, with Tehran insisting that Washington must meet its conditions before the blockade can be lifted. This lingering uncertainty continues to support oil prices, which in turn helps sustain buying interest in gold as an inflation hedge.
Looking Ahead
If subsequent data continue to confirm the disinflation trend, gold is poised to move toward the $4,600 futures target that many analysts have penciled in. But before that, whether the $4,500 handle can hold as a clear breakout level remains the key technical signal for determining gold’s further upside potential.
