gold against the dollar
Gold prices rose on Thursday to their highest level in nearly a month, supported by the dollar’s decline, after US inflation data that boosted hopes that the Federal Reserve will soon stop tightening its monetary policy.
US consumer prices rose slightly in June and recorded their smallest annual increase in more than two years as inflation continued to decline, but perhaps not fast enough to stop the Federal Reserve from continuing to raise interest rates later this month.
The dollar fell by 1 percent, Wednesday, to its lowest level in more than a year after US inflation data, which made gold more attractive to holders of other currencies.
US Treasury bond yields for ten years fell to 3.8770 percent.
On Monday, some Fed officials said the central bank was close to ending monetary tightening.
Traders are betting that inflation is slowing fast enough to allow the US central bank to end monetary tightening after raising interest rates at its scheduled meeting on July 25-26, as widely expected.
Markets see a 92 percent chance that the Federal Reserve will raise interest rates by 25 basis points at its monetary policy meeting on July 25-26, according to CME Group’s Videowatch service.
Gold is highly sensitive to rising interest rates in the United States, as higher interest increases the opportunity cost of holding non-yielding precious metal.
Prices change
Spot gold rose 0.1% to $1,959.79 an ounce by 0241 GMT, its highest since June 16.
And US gold futures rose 0.1 percent, to $ 1,964.30.
As for other precious metals, spot silver rose 0.3 percent to $24.2163 an ounce, and palladium rose 0.7 percent to $1,292.19.
Platinum rose 0.8% to $954.26, after rising three in the previous session.
2023-07-13 04:25:47
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