Gold rose once more this Tuesday, April 11, above $2,000 per ounce, following the super dollar moved away from its highs of the previous session, as traders prepared for inflation data in the United States that give clues regarding the path of interest rate hikes.
The spot price of the metal rose 0.8% to $2,005.79 an ounce, and US gold futures closed 0.8% higher at $2,019.
Bullion found respite from a pause in the dollar, following a rebound in the previous session, which also helped offset pressure from higher Treasury yields.
The possibility of the Fed raising its benchmark interest rate just one more 25 basis points is a useful starting point, New York Fed President John Williams said, while Chicago Fed chief Austan Goolsbee said the central bank should be careful when raising them because of recent banking stress.
Gold lost nearly 1% on Monday following strong US jobs data on Friday raised the odds of a May rate hike to around 70%.
Wednesday’s Consumer Price Index (CPI) data might shed light on how long the Fed will continue its anti-inflation campaign.
Meanwhile, central banks should not stop fighting inflation due to risks to financial stability, said International Monetary Fund chief economist Pierre-Olivier Gourinchas.
In other precious metals, silver gained 0.8% to $25.08 an ounce; platinum rose 0.6% to $997.20; and palladium rose 3% to $1,454.17.
