Gold prices increase amid expectations of US inflation data, Fed policy indicators


(MENAFN) On Thursday, Gold prices extended their upward trajectory for a third consecutive session, bolstered by investor anticipation ahead of the release of US inflation data later in the day. By 0200 GMT, spot gold rose by 0.2 percent to USD2,375.70 per ounce, while US gold futures edged up 0.1 percent to USD2,381.30 per ounce. The decline in the dollar further enhanced the appeal of gold, as it made the precious metal more attractive to holders of other currencies.

Market focus remains on the June Consumer Price Index (CPI) report scheduled for 12:30 GMT, alongside the Producer Price Index (PPI) report due on Friday. Analysts anticipate these economic indicators to provide insights into whether the US Federal Reserve will proceed with interest rate cuts this year, influencing investor sentiment and gold prices accordingly. Edward Meir, an analyst at Marks, noted that any disappointing figures in the CPI report could weaken the dollar and potentially propel gold prices towards the USD2,400 mark.

Gold's role as a safe-haven asset amid geopolitical uncertainties has bolstered its demand, particularly when interest rates are low, highlighting its appeal in times of economic uncertainty. Concurrently, other precious metals also saw gains: spot silver increased by 0.4 percent to USD30.94 per ounce, platinum rose by 0.2 percent to USD991.80 per ounce, and palladium registered a 0.6 percent gain, reaching USD992.30 per ounce. These movements underscore ongoing investor interest in precious metals as a diversification strategy in volatile market conditions. 

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