© Reuters. Gold bars in a photo from the Reuters archive.
(Reuters) – Gold prices jumped 2% to a two-month high on Thursday after data showed U.S. inflation eased slightly in October, fueling hopes that the Federal Reserve may ease the pace of rate hikes. .
The Labor Department said the US consumer price index rose 0.4% last month, after jumping by the same margin in September. Experts interviewed by Reuters had expected inflation to rise by 0.6%.
And it jumped to $ 1740.28 an ounce by 1425 GMT. In the United States, too, it jumped 1.8 percent to $ 1,744.30.
It fell more than 1% to its lowest level in nearly two months after the US data was released, making gold less expensive for holders of other currencies. Ten-year yields fell to their lowest level in a month.
Although gold is an inflation hedge, it is very sensitive to rising interest rates because it increases the opportunity cost of holding non-yielding bullion.
For other precious metals, it rose 3.2% to $ 21.69 an ounce.
Platinum jumped four percent to $ 1025.20, while it jumped 2.1 percent to $ 1,903.75.
(Prepared by Marwa Gharib and Noha Zakaria for the Arabic Bulletin – Edited by Mustafa Saleh)
