Gold prices rise in early trade

21 Feb 2023 , 08:39 AM

Tuesday saw a little increase in gold prices as the dollar retreated off a six-week high as traders awaited new economic data to determine the U.S. Federal Reserve’s rate-hike plans.

Spot gold was up 0.1% at $1,843.23 per ounce. Futures for U.S. gold increased 0.1% to $1,851.80.

Because the dollar index was parked below recent levels, purchasers holding other currencies could purchase gold at a lower price.

Investors are currently anticipating the release of the Fed’s most recent policy meeting minutes on Wednesday. The U.S. central bank is anticipated by the money markets to increase benchmark rates above 5% by May, with a high in rates anticipated for July at 5.3%.

Investors are also keeping an eye on the U.S. core personal consumption expenditure (PCE) data that is due later this week.

Olli Rehn, the head of the Finnish central bank, told a German publication that the European Central Bank should continue rising interest rates after March and that the rate peak, which should be maintained for some time, could be achieved during the summer.

The Bundesbank warned on Monday that underlying price increases will take longer to slow down than headline inflation, but that Germany’s economic prospects are improving following an unexpectedly resilient fourth quarter.

Platinum up 0.2% to $928.65, palladium increased 0.1% to $1,512.07, and spot silver increased 0.4% to $21.83 per ounce.

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