Friday, September 29, 2023

Gold is ahead of US inflation data, which provides clues about interest rates

Gold fell to a more than two-week low on Tuesday as the dollar edged higher as investors awaited the release of the U.S. inflation report that could clarify the direction of Federal Reserve interest rates.

* At 1750 GMT, spot gold prices fell 0.5% to $1,912.39 an ounce, a low since Aug. 25, while U.S. gold futures fell 0.6% to $1,935, $10.

* The dollar index, which compares the greenback against a basket of six major currencies, gained 0.2% ahead of the release of U.S. consumer price index (CPI) data on Wednesday, making gold more expensive for holders of other currencies.

* “People are exiting the market and waiting to see how the data comes out and maybe buying gold at a lower price because there is still (some) asset buying going on,” said Bob Haberkorn, senior market strategist at RJO Futures.

* The European Central Bank’s interest rate decision will be announced on Thursday and markets are increasingly betting on another hike.

* “The European economy is facing many challenges, so at some point there will be a demand for safe havens as investors realize that the currency will come under pressure,” said Harshal Barot, senior consultant at Metals Focus.

* Among other precious metals, spot silver was stable at $23.07 per ounce; Platinum rose 1.4% to $910.82; and palladium rose 1.5% to $1,236.17.

World Nation News Desk
World Nation News Desk
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