Recession fears fuel the upside
Gold prices rose for the third consecutive session on Thursday, as lower-than-expected US inflation data boosted bets that the Federal Reserve may raise interest rates again next month and then halt the increases.
And by 03:32 GMT, gold in spot transactions rose 0.1%, to 2016.99 dollars an ounce, and US gold futures increased 0.3%, to 2030.70 dollars.
Gold prices rose by more than 1%, on Wednesday, after data showed that the consumer price index in the United States rose 0.1% last month, compared to expectations for a 0.2% increase, after rising 0.4% in February, according to Reuters.
“Expectations that the Fed’s hike cycle may be nearing its end is supported by recent US consumer price index data, while lower Treasury yields and a weaker dollar support gold prices,” said Yip John Rong, market analyst at IG.
Gold is a hedge against inflation, but high interest rates reduce its attractiveness because it does not generate a return.
Yep added that recession fears “allow gold prices to build on their safe-haven status.”
Silver in spot transactions increased 0.1%, to $25.50 an ounce, platinum settled at $1015.06, and palladium rose 0.3%, to $1464.16.
