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%
|
|
