Gold prices rose about $17, during today’s trading, Thursday, April 13 (2023), for the third consecutive session, with the US currency declining.
Weaker-than-expected US inflation data led to bets that the Federal Reserve may raise interest rates again before pausing.
Gold prices today
By 08:29 am GMT (11:29 am Mecca time), the price of gold futures contracts – delivery June 2023 – increased by 0.82%, equivalent to $ 16.70, recording $ 2041.60 an ounce.
And gold prices ended their dealings, yesterday, Wednesday, April 12, with an increase for the second consecutive session, with the decline of the US currency, after recent data showed a decrease in the inflation rate in America.
The price of immediate delivery of the yellow metal increased by 0.63%, at $ 2027.60 an ounce, according to the data monitored by the specialized energy platform.
The price of silver futures contracts – delivery of May 2023 – increased by 1.15%, recording $ 25.75 an ounce.
The spot platinum price increased by 0.31%, to reach $1023.57 an ounce, and the spot palladium price decreased by 0.68%, to $1463.19 an ounce.
At the same time, the dollar index – which monitors the performance of the US currency against 6 major currencies – fell by 0.20% to 100.968 points.
Gold market analysis
Gold prices rose more than 1% during trading on Wednesday, after data showed that the US consumer price index rose by 0.1% last month, compared to expectations for an increase of 0.2%, after advancing by 0.4% in February.
“Expectations that the Fed’s hike cycle may be nearing its end is well anchored in the latest US CPI data, with lower Treasury yields and a weaker dollar supporting gold prices,” said IG Market Analyst Yip Jun Rong.
Markets are currently pricing in a 66.2% chance of a 25bps hike in May, with rate cuts in the second half of the year.
Gold price forecast
said technical analyst LuReuters Wang Tao, that spot gold prices may retest the resistance at $2032 an ounce.
San Francisco Fed President Mary Daly said that while the Fed has “more work to do” on raising interest rates; The tightening of credit conditions may require a pause.
Richmond Fed President Thomas Barkin said the Fed has more work to do to bring inflation down to its 2% target; Because the recent data on price pressures has not been weak enough.
The Fed’s March meeting minutes also showed that many policy makers considered pausing interest rate increases after predicting that banking sector pressures would push the economy into recession.
IG analyst Yip Rong said recession fears are “allowing gold prices to build on their safe-haven status… while technical conditions reveal some moderation in bullish momentum on recent highs.”
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