Sunday, October 1, 2023

Gold falls on dollar strength after US inflation data

Sept 13 (Reuters) – Gold prices fell on Wednesday on strength in the dollar, although growing expectations that the Federal Reserve will keep interest rates unchanged next week limited bullion’s decline.

* At 1751 GMT, spot gold prices fell 0.2% to $1,909.83 an ounce, after hitting $1,906.50 on Tuesday, the lowest since August 25. U.S. gold futures fell 0.1% to $1,932.50.

* Consumer prices in the United States posted their biggest increase in the past 14 months due to a rise in gasoline prices, but the annual rise in core inflation was the smallest in nearly two years.

* The dollar index rose against its peers after inflation data that made gold more expensive for holders of other currencies.

* Higher interest rates are increasing the yield on government bonds that compete as safe havens, driving investors away from the non-interest-bearing metal gold.

* “Precious metals investors are less concerned about higher inflation and more focused on the opportunity cost associated with holding a non-interest bearing asset in a rising interest rate environment,” said Chris Gaffney, president of EverBank World. Markets.

* Investors now await U.S. retail sales and producer price data for August, as well as the European Central Bank’s rate decision on Thursday, before the Federal Reserve makes its policy decision on September 20. .

* Among other precious metals, silver fell 1.2% to $22.83 an ounce, platinum fell 0.9% to $901.93; and palladium rose 1% to $1,252.70.

Nation World News Desk
Nation World News Desk
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