2023-12-12 10:06:17
Gold prices rose on Tuesday after hitting a three-week low in the previous session, supported by a weaker dollar ahead of key US inflation data and key central bank policy meetings to get indices on interest rates.
Spot gold was up 0.2% at $1,984.39 an ounce, by 0946 GMT. U.S. gold futures rose 0.3% to $1,999.60.
The dollar fell 0.3% against its rivals, making gold cheaper for holders of other currencies.
“The chances of gold rallying above the $2,000 level in the near term depend on what happens today with U.S. inflation data,” said Ricardo Evangelista, senior analyst at ActivTrades.
“Stronger than expected job gains last month in the US seems a bit worrying and could be a precursor to a stronger than expected CPI today…that would be bad news for the gold,” added Mr. Evangelista.
A positive US jobs report last week dampened hopes that the Federal Reserve would cut interest rates as soon as March.
The US Consumer Price Index (CPI) report is due at 1330 GMT. Economists polled by Archyde.com expect U.S. headline inflation to be stable in November and core inflation to hold at an annual pace of 4% – well above the Bank’s 2% target. Fed.
The Federal Open Market Committee’s two-day monetary policy meeting will conclude Wednesday with the interest rate decision and release of the summary of economic projections.
The Fed is expected to leave rates unchanged at 5.25%-5.50% this week, with about a 77% chance of cutting rates in May, according to the CME’s FedWatch tool.
Declining interest rates tend to support non-interest bearing bullion.
It is also worth noting that the European Central Bank and the Bank of England will hold policy meetings on Thursday.
Silver rose 0.4% to $22.88 an ounce, while platinum gained 1% to $918.69 and palladium climbed 1.2% to $968.39 an ounce. . (Reporting by Anjana Anil in Bengaluru; Editing by Shailesh Kuber)
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