Gold surges as dollar declines amid anticipation of US inflation ‎data

Gold prices increased with the decline of the dollar today, Tuesday, after declining more than 1 percent in the previous session, while investors await this week US inflation data that may affect the course of the monetary policy of the Federal Reserve (US Central Bank).

According to “Reuters”, gold rose in spot transactions by 0.2 percent, to $ 1994.48 an ounce, by 0036 GMT. US gold futures rose 0.1 percent to $1,994.60.

The dollar index fell 0.1 percent, making the yellow metal cheaper for buyers of other currency holders.

Investors are awaiting US consumer price data, which is scheduled to be released on Wednesday, in search of more clarity on the direction of interest rates during the US Central Bank’s monetary policy meeting in May.

A strong employment report in the United States released on Friday led to bets emerging that the US central bank will raise interest rates next month, with the market expecting a 71.3 percent increase of 25 basis points, according to CME’s Videowatch service.

The opportunity cost of possessing gold, which does not yield a return, rises with the increase in interest rates to curb inflation.

As for other precious metals, silver rose 0.1 percent to $ 24.91 an ounce, while platinum increased 0.3 percent to $ 994.64, and palladium rose 1.3 percent to $ 1429.54.