Gold holds ground above 3-month low

2022-05-11 11:35:03 GMT (Economies.com)
Gold holds ground above 3-month low

Gold prices rose in European trade above three-month lows on track for the first profit in three days, ahead of crucial US inflation data.

 

Gold Prices

 

Prices rose 0.9% to $1,854 an ounce, after closing down 0.9% yesterday, the second loss in a row, as the dollar index hit 20-year highs.

 

US Dollar

 

The dollar index fell 0.4% on Wednesday on track for the first loss in four sessions off 20-year highs at 104.19.

 

The dollar is slipping now after statements from Fed officials, which cut the chances of a 0.75% rate hike next month.

 

US Inflation

 

From the US, consumer prices are expected up 0.2%, compared to a 1.2% rise in February, while core prices are expected up 6%, slowing down from 6.5% in March.

 

Inflation data will play a crucial role in determining the path forward for policy decisions. 

 

Now analysts expect gold to hold around $1,830 an ounce, and potentially fall below $1800 if inflation hit fresh record highs.

 

The SPDR

 

Gold holdings at the SPDR fell 7.25 tones to a total of 1,075 tones, the lowest since March 15.

 
 
 
  Symbol Last Change Chg.%
1.0413
-0.0132
1.2485%
1.2223
-0.0127
1.0259%
20.901
-1.223
5.528%
109.115
1.958
1.827%
110.62
-0.88
0.79%
1793.685
-75.175
4.022%
 
 
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