Saturday, 13 April 2024

Gold stable, eyes turn to inflation report in America


Gold prices stabilized on Thursday at a time when traders were reluctant to take any new positions ahead of the publication of key inflation data in the United States scheduled to be released later Thursday that may provide more indications of the path that the Federal Reserve (the US central bank) will adopt regarding… interest rates.

According to Reuters, gold settled in spot transactions at $2,036.42 per ounce by 0701 GMT, while US gold futures rose 0.1% to $2,045.00.

There has been no significant change in gold prices in spot transactions on a monthly basis so far, after recording a 1.2% decline in January.

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US personal consumption expenditure inflation data, the Fed’s preferred measure, is scheduled to be released at 1330 GMT.

Officials from the US Central Bank said this week that there is still a way to go to reach the inflation target of 2 percent, but the door is open to cutting interest rates, which is likely later this year.

Low interest rates enhance the attractiveness of holding non-yielding bullion.

The dollar index jumped 0.6%, and standard ten-year Treasury bond yields rose by more than 30 basis points from the beginning of February until now.

The rise in the dollar makes gold more expensive for buyers in other currencies, while the rise in bond yields reduces the attractiveness of gold because it increases the opportunity cost of possessing the yellow metal.

As for other precious metals, silver rose in spot transactions 0.3% to $22.53 per ounce, platinum rose 0.5% to $882.51, and palladium jumped 0.8% to $935.93.