Gold prices rise on weaker dollar ahead of US inflation data

Reported 6 months ago

Gold prices increased on Tuesday as the dollar weakened, with investors anticipating U.S. inflation data later in the week to gauge potential interest rate cut timing. Spot gold rose 0.3% to $2,357.44 per ounce, while U.S. gold futures settled 0.9% higher at $2,356.5. The decline in the dollar index and lower yield curve rates contributed to the rise in gold prices. The focus for the week will be on U.S. core PCE price index data, with traders currently pricing in around a 63% chance of a Fed rate cut by November. Despite global physically-backed gold ETF outflows of 11.3 metric tons last week, gold prices are likely to remain supported by buying-on-dips demand and central bank diversification.

Source: YAHOO

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