Gold prices rose on Friday due to fears of growing conflict Appeal in Middle East withdrawn safe haven metalDespite America being stronger than expected inflation data Boosting the dollar and Treasury yields.
Spot gold was up 0.5% at $2,038.19 an ounce at 0951 GMT, extending its move above the $2,000 level for almost a month. US gold futures were up 1.2% at $2,042.90.
“Gold continues to rise due to geopolitical conflict In the Middle East… despite a stronger than expected CPI print, gold prices have recovered today and are up and likely to rise further,” said Kunal Shah, head of research at Nirmal Bang Commodities in Mumbai. ,
The sudden escalation of the war in Gaza is raising questions as to how long the stock market can remain bullish and when the central bank will cut rates.
The United States and Britain launched strikes on sites linked to the Houthi movement in Yemen, while Saudi Arabia called for restraint in the wake of the attacks.
Markets now await US producer prices data due at 1330 GMT, after Thursday’s data showed US consumer prices rose more than expected in December. However, excluding volatile food and energy costs, the pace of price growth fell to 3.9% on an annual basis from 4%.
Fed officials signaled insufficient progress on inflation to begin cutting rates in March. But traders still see a 71.4% chance of a rate cut in March, according to the CME FedWatch tool.
Higher rates reduce the appeal of non-yielding bullion.
“Market participants expect a softening of the US economy, which would allow the Fed to cut rates in the coming months. This should support the price of the yellow metal,” said UBS analyst Giovanni Stanovo.
Spot silver rose 0.7% to $22.91 an ounce, platinum rose 0.6% to $920.42 and palladium rose 0.2% to $990.25.
Spot gold was up 0.5% at $2,038.19 an ounce at 0951 GMT, extending its move above the $2,000 level for almost a month. US gold futures were up 1.2% at $2,042.90.
“Gold continues to rise due to geopolitical conflict In the Middle East… despite a stronger than expected CPI print, gold prices have recovered today and are up and likely to rise further,” said Kunal Shah, head of research at Nirmal Bang Commodities in Mumbai. ,
The sudden escalation of the war in Gaza is raising questions as to how long the stock market can remain bullish and when the central bank will cut rates.
The United States and Britain launched strikes on sites linked to the Houthi movement in Yemen, while Saudi Arabia called for restraint in the wake of the attacks.
Markets now await US producer prices data due at 1330 GMT, after Thursday’s data showed US consumer prices rose more than expected in December. However, excluding volatile food and energy costs, the pace of price growth fell to 3.9% on an annual basis from 4%.
Fed officials signaled insufficient progress on inflation to begin cutting rates in March. But traders still see a 71.4% chance of a rate cut in March, according to the CME FedWatch tool.
Higher rates reduce the appeal of non-yielding bullion.
“Market participants expect a softening of the US economy, which would allow the Fed to cut rates in the coming months. This should support the price of the yellow metal,” said UBS analyst Giovanni Stanovo.
Spot silver rose 0.7% to $22.91 an ounce, platinum rose 0.6% to $920.42 and palladium rose 0.2% to $990.25.
