Gold stabilizes amid anticipation of US consumer price index data
Gold stabilizes amid anticipation of inflation data and rising probability of interest rate hike
Translated by Qiyas from الراي — Original source
Gold prices settled in early Asian trading on Wednesday as traders awaited the release of U.S. consumer price index data, which could influence the Federal Reserve’s next decision on monetary policy.
The U.S. consumer price index report is scheduled for release at 12:30 GMT, with producer price index and retail sales data to follow on Thursday.
According to CME Group’s FedWatch Tool, markets price in a 23% probability of a U.S. interest rate hike this month, compared with an 88% chance of a hike in December.
Gold, which yields no return, typically comes under pressure when interest rates rise.
New York Federal Reserve President John Williams reaffirmed his view that the U.S. central bank may need to raise interest rates again this year in its effort to curb inflation.
The International Monetary Fund warned on Tuesday of significant risks to growth and financial stability stemming from the potential end of the artificial intelligence investment boom, rising debt levels, and the prolonged conflict in the Middle East.
In other precious metals, spot silver fell 0.5% to $59.12, platinum declined 0.4% to $1,656.08, and palladium dropped 0.1% to $1,124.39.
