2023-06-13 06:15:58
Gold rose, on Tuesday, with the decline of the dollar, but price movement remained in a narrow range, as dealers await the release of US inflation data later today and the Federal Reserve’s decision on monetary policy tomorrow.
Gold in the spot market rose 0.2 percent to $1,960.59 an ounce by 0426 GMT. US gold futures rose 0.3 percent to $1,974.60.
The dollar fell 0.2 percent, making gold denominated in the US currency more attractive to holders of other currencies.
“The market is waiting for US CPI data and the Federal Reserve Monetary Policy Committee meeting to set a clearer direction for gold prices,” said Michael Langford, director at corporate advisory firm AirGide. “(But) there is no reason for gold to outperform other asset classes regardless of the process. The Federal Reserve’s decision-making on monetary policy.
Economists polled by Archyde.com said the US consumer price index for May is expected to show a slowdown in year-on-year inflation to 4.1 percent from 4.9 percent in April and a monthly increase of 0.2 percent, down from 0.4 percent in the previous month.
According to CME Group’s Videowatch service, 81 percent of traders expect the Federal Reserve to keep interest rates unchanged, while 19 percent of them expect to raise interest rates by 25 basis points.
The European Central Bank will announce its decision on interest rates next Thursday. It is widely expected to raise it by 25 basis points. However, the Bank of Japan (the central bank), which will announce its decision on Friday, is expected to continue its monetary easing policy.
Among other precious metals, spot silver rose 0.4 percent to $24.1395 an ounce. Platinum rose 0.5% to $994.47. Palladium rose 0.9 percent to $1,361.62.
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