Gold prices rise in early trade

11 Apr 2023 , 08:35 AM

The dollar weakened on Tuesday as investors awaited this week’s U.S. inflation data that may affect the Federal Reserve’s monetary policy trajectory. Gold prices had dropped more than 1% the previous session.

Spot gold was up 0.2% at $1,994.48 per ounce. At $1,994.60, U.S. gold futures increased by 0.1%.

Because of the 0.1% decline in the dollar index, bullion is now more affordable for owners of other currencies.

Investors are now looking for more information on the direction of rates ahead of the Fed’s May policy meeting in the United States consumer price data, which is coming on Wednesday.

Strong U.S. employment data issued on Friday increased betting that the U.S. central bank will increase interest rates next month; according to the CME FedWatch tool, markets are pricing in a 71.3% chance of a 25 basis-point boost.

According to a New York Fed report, Americans stated this month that getting credit was more difficult than it had been in almost a decade, and they were also preparing for more inflation in the coming years.

According to Federal Reserve Bank of New York President John Williams, the problems with the financial system that forced the central bank to give banks a lot of credit were not a result of the Fed’s zealous efforts to reduce inflation.

The largest gold-backed exchange-traded fund in the world, SPDR Gold Trust, reported that its holdings increased 0.25% to 933.22 tonnes on Monday from 930.91 tonnes on Thursday.

Spot silver increased by 0.1% to $24.91 per ounce, platinum increased by 0.3% to $994.64, and palladium increased by 1.3% to $1,429.54.

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