gold
Gold prices rose more than 1% on Wednesday, after signs of slowing inflation in the United States raised hopes that the US Federal Reserve would end the cycle of raising interest rates sooner than previously thought.
US consumer prices rose slightly in June, posting the smallest annual increase in more than two years, as inflation continued to ease.
Over the year before June, the consumer price index increased 3 percent, compared to a Reuters estimate of 3.1 percent.
price movements
Spot gold rose 1.3 percent to $1957.32 an ounce by 18:21 GMT.
US gold futures rose 1.3 percent to $1,961.70.
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 bet, on Wednesday, that inflation was slowing fast enough to allow the US central bank to end its monetary tightening policy after raising interest rates during its scheduled meeting on July 25-26, as widely expected.
Markets see a 91 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.
As for other precious metals, silver rose in spot transactions 4.4 percent to $ 24.11 an ounce, its highest price since June 19, and platinum increased 2.9 percent to $ 950.98, while palladium rose 2.6 percent to $ 1281.23.
2023-07-12 19:50:13
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