Gold prices decline

13 Feb 2023 , 09:45 AM

While investors anticipated this week’s U.S. inflation statistics for clues on the Federal Reserve’s interest rate hike path, gold prices decreased on Monday as the dollar strengthened.

Spot gold was down 0.2% at $1,861.76 per ounce. To $1,872.40, U.S. gold futures declined by 0.1%.

The dollar grew 0.1% against its competitors. Gold priced in US dollars is more expensive for buyers using foreign currencies.

Patrick Harker, president of the Philadelphia Federal Reserve, stated on Friday that the unexpectedly positive jobs data from earlier this month did not change his opinion that the U.S. central bank should switch to smaller interest rate increases. He also hinted at the possibility of rate cuts in 2024 should inflation continue to decline.

The Fed’s target rate is now anticipated by market participants to reach its maximum in July at 5.177%.

In February, consumer confidence in the United States reached a 13-month high, although people anticipated rising inflation to continue over the following 12 months, a study released on Friday revealed.

On Friday, benchmark 10-year note rates reached their highest level since January 6.

Last week’s drop in domestic gold prices attracted physical gold purchasers in various Asian hubs, while central bank demand held premiums steady in China.

Spot silver prices dropped by 0.4% to $21.90 an ounce, platinum prices dropped by 0.3% to $942.19, while palladium prices increased by 0.3% to $1,547.46.

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