Gold rises for second day ahead of US inflation data

2019-09-12 12:49:08 GMT (Economies.com)
Gold rises for second day ahead of US inflation data

Gold prices rose today in the European market, for the second day to continue to recover from a 1-month low, as dollar fell against a basket of currencies, ahead of the release of key US data on inflation in addition to strong haven demand ahead of the ECB decisions and Mario Draghi's speech.

 

Gold prices rose by 0.6% to $1,505.88 an ounce, from the opening of $1,497.38, with a low of $1,489.24.

 

Yesterday, gold closed higher by 0.8%, for the first day in the last 5, in attempts to recover from a 1-month low hit in the previous day at $1,484.48.

 

The dollar index fell by 0.1% today, to fall from a 1-week high of 98.75 points, which favor most metals and commodities denominated in dollars.

 

This drop comes ahead of key US inflation data for August, which provides strong evidence on the possibility of the US Fed's rates cuts for this year for the second time at the next week's meeting.

 

The markets are also anticipating the ECB decisions and Governor Mario Draghi's press conference later today, with forecasts for the ECB to cut interest rates to a negative range and to announce quantitative easing policies to to stimulate the european economy, which will favor the rise safe havens, especially gold and silver.

 

Gold holdings at SPDR Gold Trust, remained unchanged yesterday for the second day, to a total of 882.42 metric tons (the lowest level since September 2nd).

 
 
 
  Symbol Last Change Chg.%
1.1024
0.0004
0.0376%
1.2472
0.0003
0.0236%
17.964
0.513
2.940%
58.477
3.583
6.527%
64.28
-0.12
0.19%
1516.410
27.430
1.842%
 
 
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