On Monday, gold prices increased thanks to a weaker dollar as investors anticipated U.S. inflation data that might determine the Federal Reserve’s interest rate decisions.
Spot gold increased 0.3% to $1,922.89 per ounce by 0313 GMT after falling 1% the week before. Futures for U.S. gold increased 0.2% to $1,946.30.
According to Matt Simpson, a senior analyst at City Index, if the U.S. dollar continues to weaken on wagers that the Fed is actually finished with its tightening cycle and there is a chance they could lower rates sooner than expected, gold should be maintained above the $1,900 level.
He claimed that gold had found support near its 200-day moving average, a crucial technical level that was difficult to break through, and that if U.S. inflation undershoots, that may put additional pressure on the U.S. dollar.
spot gold could hit a resistance level at $1,930 per ounce again. [TECH/C]
The benchmark 10-year bond yield and the U.S. currency both decreased by 0.3%, increasing the appeal of non-yielding bullion to foreign investors. [USD/] [US/]
Tim Waterer, chief market analyst at KCM Trade, wrote in a note that “the precious metal will likely be relying on a pullback in yields in order to again challenge the $1,950 level.”
This year’s interest rate choices by the Fed are anticipated to be influenced by the U.S. Consumer Price Index (CPI) data for August, which is due on Wednesday.
Prior to this month’s policy-setting meeting, the Fed’s decision-makers made it apparent that they are not eager to raise interest rates but also that few of them are prepared to declare success either.
Spot silver increased by 0.5% to $23.02 an ounce, platinum increased by 0.4% to $896.16 after falling by 7% the previous week, and palladium edged up by 0.5% to $1,203.68.