© Reuters. Gold prices stabilize as investors await US inflation data
It maintained its stability, during trading today, Wednesday, supported by a slight decline in the dollar and US Treasury yields, while investors are waiting to measure the course of the Federal Reserve regarding the monetary normalization policy.
Spot gold rose 0.1% to $1,760.91 an ounce by 05:26 GMT, while the US rose 0.1% to $1,761.10, and fell 0.2% after hitting its highest level in more than a year in the previous session.
The benchmark 10-year yield fell from its highest level in more than four months on Tuesday.
“We will get US CPI data and these minutes from the September FOMC meeting, so I think there is potential for gold to get a bullish catalyst, after this period of stability,” said Ilya Spivak, currency strategist at DailyForex.
He added, “If the CPI records high increases, we are likely to be looking at expectations that the Federal Reserve may need to move faster in raising interest rates.”
US consumer price inflation data is due at 12:30 GMT, while the minutes of the Federal Reserve’s September 21-22 monetary policy meeting will be released at 1800 GMT.
Three policymakers at the Fed said on Tuesday that the economy had recovered enough for the central bank to begin withdrawing its support during the crisis.
The financial markets are advancing in pricing the large increases in interest rates with the escalation of inflationary pressures worldwide.
“There are elevated risk concerns ahead of US earnings season,” Jeffrey Haley, chief market analyst for Asia Pacific at OANDA, said in a note.
He added, “The Fed’s warning should limit gold’s rally and still tilt to the downside in the coming weeks.”
Spot prices rose 0.6% to $22.66 an ounce, and platinum settled at $1,007.56, and it rose 0.1% to $2,046.52.
Written by: Hala Mosbeh
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