Gold prices rise in anticipation CPI data in U. S.
2023.02.14 01:53
Gold prices rise in anticipation CPI data in U. S.
By Ray Johnson
Budrigannews.com – In anticipation of additional economic cues from U.S. consumer inflation data due later in the day, investors kept to the sidelines, despite gold prices rising slightly from a one-month low on Tuesday.
The dollar stabilized amid concerns that inflation could surprise to the upside, triggering additional Federal Reserve interest rate hikes. The majority of other metal prices also remained within narrow trading ranges.
By 19:30 ET (00:30 GMT), it had increased by 1% to $1,855.60 an ounce and by 1% to $1,866.00 an ounce. On Monday, as markets became volatile in anticipation of the reading, both instruments declined.
Even though inflation is expected to remain relatively high, the data are expected to show that it eased further in January compared to the previous month. The Fed may be able to sustain its hawkish rhetoric thanks to this trend.
The opportunity cost of holding non-yielding assets increased in tandem with U.S. Treasury yields in 2022, which caused gold prices to suffer. Even though the yellow metal experienced some respite in the first few weeks of 2023, the majority of gold’s recent gains were reversed by resurgent Fed fears.
Bullion prices were also under pressure in recent sessions due to a rise in short-term Treasury yields and a recovery in the, which was close to a one-month high against a basket of currencies. On Tuesday, profit-taking led to a slight decline in the dollar.
On Tuesday, prices of other precious metals were also muted. remained steady around $21.990 an ounce despite a 0.2% increase to $961.10 an ounce.
Copper prices, one of the industrial metals, fell after making big gains in the previous session. Traders were still weighing the possibility of a recovery in Chinese demand against fears of a global recession this year.
After gaining more than 1% during the previous session, the price of a pound decreased by 0.2% to $4.0580.
China, the world’s largest importer of the metal, has given mixed signals regarding an economic recovery, which has led to volatile swings in the red metal in recent weeks.
However, fears of a slowdown in other major economies, particularly signs of a slowdown in industrial activity in the United States and the Eurozone, have weighed heavily on prices.
