ALBAWABA – Gold prices rose Wednesday on a weaker dollar and fluctuating bond yields, news agencies reported, as markets brace for United States (US) inflation data to shed light on the chances of another US interest rate hike.
The Federal Reserve’s (Fed) board is slated to convene later this month to discuss the results of 10 consecutive rate hikes and their impact on US inflation. The outcomes of the meeting on July 25 will determine monetary policy changes for the coming weeks and months.
Gold prices rose on Wednesday after the dollar and bond yields retreated as investors awaited U.S. inflation data that could offer more cues on the Federal Reserve’s rate-hike policy path.
US gold futures and spot gold both rose 0.4 percent, to $1,939.43 and $1,944.90 per ounce, respectively, according to Bloomberg and Reuters.
Meanwhile, the dollar index fell 0.4 percent to its lowest level since May 11, while Benchmark 10-year US Treasury yields also slipped to their lowest in nearly a week.
“There has been some renewed confidence in gold prices lately, given the broad expectations for the upcoming US CPI to reflect further moderation in pricing pressures,” Yeap Jun Rong, market strategist at IG, told CNBC.
Economists polled by Reuters expect June core inflation rate to have dropped to 5 percent from 5.3 percent, still significantly above the Fed’s 2 percent target.
On another note, spot silver gained 0.6 Percent to $23.24 per ounce, platinum rose 0.7 Percent to $930.61 while palladium was up 0.13 Percent to $1,252.73.
