Gold prices rise as investors await key US inflation data
Date
7/11/2024 4:06:05 AM
(MENAFN) Gold prices rose for the third consecutive session on Thursday, as investors eagerly awaited U.S. inflation data expected later in the day, which could provide further insight into the Federal Reserve's future interest rate decisions. By 0200 GMT, spot gold had increased by 0.2 percent to USD2,375.70 per ounce, while U.S. gold futures were up 0.1 percent at USD2,381.30 per ounce. The recent decline in the dollar has made gold, priced in dollars, more appealing to holders of other currencies.
Investors are particularly focused on the June consumer price index (CPI) report, due at 1230 GMT, and the producer price index (PPI) report scheduled for release on Friday. There is widespread anticipation that these reports will bolster optimism about the potential for the Federal Reserve to cut interest rates later this year. Edward Meir, an analyst at Marks, noted that a lower-than-expected CPI report could weaken the dollar and push gold prices up to USD2,400 per ounce.
Gold is traditionally viewed as a hedge against geopolitical turmoil, and its attractiveness as a yield-bearing asset typically increases in low interest rate environments. In addition to gold, other precious metals also saw gains: spot silver rose by 0.4 percent to USD30.94 per ounce, platinum increased by 0.2 percent to USD991.80 per ounce, and palladium advanced by 0.6 percent to USD992.30 per ounce.
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