Gold prices rose by more than $7 during trading today, Thursday, January 12, supported by the decline in the US currency.
This comes at a time when market participants are awaiting US inflation data that may affect the course of the Federal Reserve’s policy to raise interest rates.
Gold prices today
By 08:04 am GMT (11:04 am Mecca time), the price of gold futures contracts – February delivery 2023 – increased by 0.35%, equivalent to $ 6.60, to reach $ 1885.50 an ounce.
She was gold prices It ended its trading, yesterday, Wednesday, January 11, on the rise, recording its highest level in 8 months, supported by the decline in US Treasury bond yields.
Prompt delivery’s price has also increasedfor yellow metal By 0.34%, to record $1882 an ounce.
The futures price rose for silver March delivery (2023)- by 1.29%, recording $23.79 an ounce.
price fell Platinum Spot by about 0.13%, to reach $ 1071.40 an ounce, and the price of palladium Spot by 0.47%, at $1,788.34 an ounce.
At the same time, the index declined dollar Which monitors the performance of the US currency against 6 major currencies, by 0.01%, at 103.19 points.
conditions of the gold market
“Gold prices are well supported with the decline in the US dollar,” said Ajay Kedia, Director at Kedia Commodities. Reuters.
The dollar index fluctuated near a 7-month low, while US 10-year Treasury yields also fell.
A weaker dollar usually makes bullion denominated in the greenback more attractive to other currency holders.
He added, “However, on the technical front, the precious metal is witnessing some resistance around $1880 levels, and therefore, it has been consolidating in a limited range for a few days.”
US inflation data
Investors’ focus remains on the US CPI data due at 01:30 PM GMT.
Economists polled by Reuters had expected consumer prices to grow 6.5% year-on-year in December, down from 7.1% in November.
“If lower-than-expected CPI results are released, we could see gold prices above $1,900,” said Michael Langford, director of corporate advisory firm AirGuide.
“However, any upward movement is likely to be very short-lived, as investors will take profits,” he added.
interest rates
I mentioned the boss Federal Reserve In Boston, Suzanne Collins, she is tipped to raise interest rates by a quarter of a percentage point at the central bank’s next policy meeting, The New York Times reported.
The Fed raised interest rates by 75 basis points four times in the past year, before slowing to 50 basis points in December.
Although gold is seen as a hedge against inflation, higher rates increase the opportunity cost of holding bullion.
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