Gold prices decline marginally

1 Mar 2023 , 08:53 AM

Wednesday saw a little decline in gold prices as the dollar strengthened, and investors braced for further increases in U.S. interest rates due to the persistently high inflation rate.

Spot gold was down 0.2% at $1,824.06 per ounce. U.S. gold future prices decreased 0.3% to $1,831.30.

The dollar index increased by 0.1%, increasing the price of bullion for customers using other currencies.

According to a study released on Tuesday, consumer confidence in the US surprisingly declined in February, with the drop being concentrated in lower-middle-income households.

Following a streak of positive economic statistics, the money markets anticipate that the US Federal Reserve’s target rate will peak at 5.425% in September.

According to Chicago Fed President Austan Goolsbee, the Fed has to add real-time, on-the-ground assessments of economic conditions to traditional government data and financial market readings in order to make sound policy.

On Tuesday, unexpectedly strong inflation statistics drove up the yields on euro zone bonds to their highest level in more than ten years and increased forecasts for the peak in the main interest rate at the European Central Bank to about 4%.

Current prices for platinum dropped 0.5% to $947.22, palladium dropped 0.1% to $1,415.17, and silver dropped 0.3% to $20.85 per ounce.

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