May 28, 2023

Dubai Week

Complete Dubai News World

Gold prices rise ahead of US inflation data release

U.S. stocks rose slightly on Wednesday as the dollar weakened and investors focused on key U.S. inflation data, due out later in the day, with interest rates picking up signs of nearing a peak.

Spot gold was up 0.1% at $2005.18 an ounce by 0051 GMT, while US gold futures were up 0.1% at $2020.10.

The dollar index fell 0.1 percent, making the precious metal cheaper for holders of other currencies.

All eyes are on US CPI data at 1230 GMT for a clue on the path of US interest rates.

Philadelphia Fed President Patrick Harger said Tuesday he still believes the U.S. central bank will need to raise interest rates above 5 percent and keep them at that level to rid the economy of deflation.

A strong employment report in the US last week challenged the Federal Reserve to raise interest rates next month. CME Group’s VideoWatch service said markets expect 68.9% of interest rates to rise by 25 basis points.

Gold is seen as a haven against inflation, but high interest rates are reducing the attractiveness of the low-yielding metal.

In other precious metals, silver was at $25.06 an ounce, platinum was up 0.3 percent at $997.49, and palladium was up 0.7 percent at $1,456.08.

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