Gold prices up with bets on stopping raising interest rates

Gold prices rose for the third consecutive session today, Thursday, as lower-than-expected US inflation data reinforced bets that the Federal Reserve (the US central bank) may raise interest rates again next month and then halt the increases.

By 0332 GMT, spot gold rose 0.1 percent to $ 2016.99 an ounce. US gold futures rose 0.3 percent to $2,030.70.

According to “Reuters”, gold prices rose by more than 1 percent on Wednesday, after data showed that the consumer price index in the United States rose 0.1 percent last month, compared to expectations for a 0.2 percent increase, after rising 0.4 percent in February.

“Expectations that the Fed’s hike cycle may be nearing its end are supported by recent US consumer price index data, while lower Treasury yields and weaker dollar support gold prices,” said Yip John Rong, market analyst at IG.

Gold is a hedge against inflation, but high interest rates reduce the attractiveness of the yellow metal, which does not yield a return.

As for other precious metals, silver increased in spot transactions by 0.1 percent to $ 25.50 an ounce, platinum settled at $ 1015.06, and palladium rose 0.3 percent to $ 1464.16.