On expectations that the Fed would soon stop raising rates, gold remains stable in early trade

13 Jul 2023 , 12:33 PM

After rising more than 1% the previous day, gold prices remained stable on Thursday as U.S. inflation data fueled expectations that the Federal Reserve would soon stop tightening monetary policy.

The spot price of gold was practically constant at $1,957.48 per ounce. US gold futures are unchanged at $1,962.30.

As inflation continued to decline, U.S. consumer prices increased marginally in June and recorded their smallest annual increase in more than two years, albeit probably not quickly enough to deter the Fed from starting to raise interest rates later this month.

Although owning non-yielding metal comes at a higher opportunity cost when interest rates are higher, gold is nevertheless considered a secure investment during periods of political and economic turmoil.

As she works to improve relations between the two countries, U.S. Treasury Secretary Janet Yellen’s visit to China has sparked optimism in Beijing that tariffs imposed by the Trump administration on Chinese imports may be lowered.

India, the second-largest consumer of simple gold in the world, has meanwhile banned imports of the jewellery in an effort to close trade policy loopholes.

The largest gold-backed exchange-traded fund in the world, SPDR Gold Trust GLD, reported that its holdings decreased by 0.03% to 914.66 tonnes on Wednesday from 914.95 tonnes on Tuesday.

Spot silver prices remained stable at $24.1255 per ounce, platinum increased by 0.6% to $951.93, while palladium increased by 0.3% to $1,287.09.

For feedback and suggestions, write to us at [e-mail]