Gold Retreats as Markets Await US Inflation Data
Gold prices fell ahead of the release of US inflation data, while the dollar stabilized and oil prices neared a decline due to a ceasefire agreement between Russia and Ukraine.
Translated by Qiyas from الجريدة — Original source
Gold retreated today, giving up its highest level in more than two weeks, as investors exercised caution ahead of the release of key U.S. inflation data this week, seeking new indicators regarding the Federal Reserve’s interest rate trajectory.
Spot gold fell 0.2 percent to $4,185.13 per ounce, after reaching its highest level since October 2 earlier in the day. U.S. December gold futures declined 0.2 percent to $4,209.70.
Tim Waterer, chief market analyst at KCM Trade, said, “In the near term, better-than-expected U.S. inflation readings will be the clearest catalyst, as they would reduce the likelihood of further monetary tightening by the Federal Reserve and ease pressure on real yields.”
U.S. President Donald Trump announced on Sunday a surprise ceasefire agreement for energy facilities between Russia and Ukraine, stating it would take “immediate effect.” However, Ukrainian President Volodymyr Zelenskyy said he was still awaiting details of the deal. Oil prices fell amid expectations of increased Russian supplies.
The dollar held near its highest level in a year and a half reached last week, making dollar-denominated gold more expensive for buyers holding other currencies.
In other precious metals, spot silver rose 0.2 percent to $60.95 per ounce, platinum gained 0.8 percent to $1,701.18, and palladium increased by 1 percent to $1,159.62.
