Gold rises ahead of US inflation data

Gold prices rose today, Tuesday, as attention turned to important US inflation data scheduled for release this week, which may provide clues about the pace and amount of interest rate cuts by the Federal Reserve this year.

By 05:57 GMT, gold in spot transactions rose 0.4% to $2,344.39 per ounce, after falling 1% yesterday, Monday, while US gold futures contracts increased 0.3% to $2,350 per ounce, “Reuters.”

US Producer Price Index data is scheduled to be released at 12:30 GMT, followed by the Consumer Price Index tomorrow, Wednesday. CPI data is expected to show core inflation rose 0.3% month-on-month in April, down from 0.4% the previous month.

Gold is known to be a hedge against inflation, but high interest rates reduce the opportunity cost of owning the yellow metal.

As for other precious metals, silver rose in spot transactions by 0.8% to $28.41 per ounce. Platinum increased 0.6% to $1,002.90 after reaching its highest level in almost a year. Palladium rose 0.8% to $968.43.