Singapore, January 12 (BNA): Gold prices rose on Thursday, supported by a weaker dollar, while market participants await US inflation data that could influence the Fed’s policy path.
Spot gold was up 0.4% at $1,883.00 an ounce as of 0650 GMT. US gold futures also rose 0.4% to $1,886.30, according to Reuters reports.
The dollar index fluctuated near a seven-month low, while US 10-year Treasury yields also fell. A weaker dollar makes bullion denominated in US dollars more attractive to other currency holders.
“Gold prices are well supported as the dollar weakens. However, on the technical front, the bullion is seeing some resistance around the $1,880 levels, and therefore, it has been consolidating in a range for a few days,” said Ajay Kedia, Director. At Kedia Commodities, Mumbai.
Investors’ focus remains on the US CPI data at 1330 GMT. Economists polled by Reuters, consumer prices grew 6.5 percent year-on-year in December, down from 7.1 percent in November.
“If lower-than-expected CPI results are released, we could see gold above $1,900. However, any upward move is likely to be short-lived as investors will take profits,” said Michael Langford, director of a corporate advisory firm. Flight guide.
Boston Fed President Susan Collins said she is leaning toward raising interest rates by a quarter of a percentage point at the central bank’s next policy meeting, The New York Times reports.
The Fed raised interest rates by 75 basis points four times in the past year, before slowing to 50 basis points in December.
Although gold is seen as a hedge against inflation, higher rates increase the opportunity cost of holding bullion.
On the physical front, Indian gold refiners have almost halted imports of gold, an almost pure alloy, as gray market operators offer huge discounts, industry officials said.
Silver rose 0.8% to $23.61, platinum fell 0.2% to $1068.81, and palladium rose 0.7% to $1786.85.