Gold Steady: Inflation Data Looms

11 Jul 2024 , 09:48 AM

Gold prices rose for the third day in a row on Thursday, as investors awaited U.S. inflation data due later in the day for further information on the Federal Reserve’s interest rate path.

The spot gold price was up 0.2% at $2,375.70 per ounce. Gold futures increased 0.1% to $2,381.30.

The dollar was on the decline, making greenback-priced bullion more appealing to other currency holders.

Investors are anticipating the June Consumer Price Index (CPI) report, which is due at 1230 GMT, as well as the Producer Price Index (PPI) report on Friday, which is expected to add to confidence that the Fed will be able to lower rates this year.

Fed Governor Lisa Cook said on Wednesday that inflation in the United States should continue to fall until the jobless rate rises significantly more.

Gold is regarded as a buffer against global turbulence, and its appeal is particularly strong when interest rates are low.

Fed Chair Jerome Powell stated on Wednesday that the US central bank will make interest rate decisions “when and as” they are warranted. On Tuesday, he told House members that “more good data” would support a rate cut.

According to CME Group’s FedWatch tool, traders are currently pricing in a 46% chance that the Fed will drop rates by two notches by the conclusion of the December meeting, and a 73% chance that the first cut will occur in September.

Among other commodities, spot silver rose 0.4% to $30.94 per ounce, platinum 0.2% to $991.80, and palladium 0.6% to $992.30.

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