Gold prices continued to rise on Wednesday. The dollar on the other hand lessens as investors looked ahead to US inflation data.
Comex gold futures rose to $1,335.80 per troy ounce, adding around $6.00 or 0.4 percent by 3:40AM ET (0840GMT). Earlier in the session, it reached its best level since February 06, valued at $1,339.40.
Gold futures notched back-to-back gains as the dollar weakened on Tuesday.
Dollar weakness usually boosts the gold. This is mostly because the gold becomes more appealing as an alternative asset. Also, dollar-priced commodities turn cheaper for holders of other currencies.
In other metals, silver futures were at $16.56 per troy ounce, rising 0.2 percent or 2.8 cents.
Palladium prices added 0.3 percent reaching $983.10 an ounce.
Sister metal platinum also gained 0.3 percent to trade at $978.90.
March copper was steady at $3.163 per pound.
Dollar Softens Ahead of US Inflation Data
Investors are trying to gauge how the inflation data will impact the Federal Reserve’s view on monetary policy in the months ahead.
The greenback’s downward trend continued on till early trade Wednesday. The dollar index, which is used to measure the strength of the greenback against a trade-weighted basket of six other major currencies, was a tad lower at 89.50. Meanwhile, the yield on the 10-year Treasury note eased back to around 2.83 percent.
The Commerce Department will be publishing the January inflation figures at 8:30AM ET (1330GMT). Market analysts are expecting consumer prices to have risen by 0.3 percent, faster than December’s 0.1 percent increase.
Core inflation on the other hand is predicted to rise 0.2 percent, a bit slower than December. The last month of 2017 served to be the time when consumer prices recorded their largest increase in 11 months.
Rising inflation can be a catalyst in pushing the Fed towards raising interest rates at a faster pace than expected.
The Commerce Department will publish the data on January retail sales at the same time Wednesday.
BWorldFinance is your primary source of news in the financial market, technology, and more. Visit bworldfinance.com now and get the latest happenings on the market. Register an account now and begin your investing journey!