Gold Prices Trade in Tight Range Ahead of US Inflation Data

The gold prices They traded in a tight range on Thursday, after hitting a two-week high earlier in the session, as investors awaited US inflation data for clues about the next moves in the company’s monetary policy tightening plans. Federal Reserve.

At 09:55 GMT, spot gold was flat at $1,832.09 per ounce, after hitting a two-week high of $1,835.67. US gold futures were down 0.2% at $1,832.20.

“Gold appears to be finally rediscovering its place as an inflation hedge and is now moving regardless of US yieldssaid Michael Hewson of CMC Markets UK.

“If inflation expectations start to rise, this could push gold higher as it could lead the Federal Reserve to tighten monetary policy too quickly, potentially holding back the global economy.”, he added.

The US consumer price index for January, due at 13:30 GMT, is expected to have risen 7.3% annually, marking the largest such increase since 1982.

A robust inflation reading would increase gold’s appeal as a hedge, but interest rate hikes would raise the opportunity cost of holding non-interest-bearing bullion.

In other precious metals, spot silver was up 0.2% at $23.33 an ounce, platinum was down 0.9% at $1,024.67, and palladium was up 0.5% at $2,290. .36.

With information from Reuters.