Gold prices rise slightly in early trade today

14 Feb 2023 , 08:43 AM

Tuesday saw a little increase in gold prices as the dollar declined, as investors prepare to assess the impact of U.S. inflation statistics on the Federal Reserve’s policy course. US CPI data will come today. 

Spot gold was up 0.1% at $1,856.01 per ounce after hitting its lowest level since early January the previous session. American gold futures increased by 0.1% to $1,865.60.

Gold traded in dollars is now less expensive for buyers holding other currencies as the dollar index fell by 0.1%.

The core CPI number is anticipated to increase by 0.4% month over month in the U.S. consumer price index (CPI) statistics to be released on Tuesday.

Fed Governor Michelle Bowman said on Monday that in order to get interest rates high enough to bring inflation back down to the central bank’s target rate, the Fed will need to keep raising them.

From its current range of 4.5% to 4.75%, the money markets anticipate that the Fed’s target rate will peak at 5.195% in July.

The chief of the International Monetary Fund (IMF) stated on Monday that financial markets have excellent cause to be more optimistic, citing China’s reopening from economic controls and the likelihood that the U.S. economy would avoid recession.

Spot silver increased by 0.1% to $21.98 per ounce, platinum increased by 0.1% to $954.87, and palladium increased by 0.2% to $1,569.85.

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