Latest News

Gold increases as dollar rally strikes pause after United States inflation information

Gold prices edged higher on Wednesday, guided by speculative buying and a time out in the dollar's rally, even as inflation data revealed slower progress on easing rate pressures, indicating fewer rate cuts into next year.

Area gold rose 0.2% to $2,602.89 per ounce by 9:54 a.m. ET (1454 GMT), rebounding from a two-month low reached on Tuesday. U.S. gold futures gained 0.1% to $2,608.80.

U.S. consumer costs increased as expected in October. Progress towards lower inflation has slowed since mid-year, which could result in less interest-rate cuts from the Federal Reserve next year.

The market had become rather oversold as an outcome of the post-election sell-off. So I think that there's been some profit-taking and maybe some speculative buying at these levels, said Peter Grant, vice president and senior metals strategist at Zaner Metals.

The pullback in the dollar is helping gold at this moment. It seems that inverse connection has sort of re-exerted itself post-election.

The U.S. dollar lost 0.1%, holding listed below its recent 6-1/2- month peak versus other major currencies, while Bitcoin paused its record-breaking rally after reaching an all-time high of $89,998 on Tuesday.

Investors think Trump's presidency might trigger the Fed to pause its easing cycle if inflation chases anticipated brand-new tariffs.

The Fed cut rates of interest by a quarter of a portion point last week. Traders now designate a 79% likelihood to a. 25-basis-point cut in December, up from 59% before the CPI information.

In the short-term, there is capacity for gold rates to. somewhat recuperate to around $2,650 per ounce, but they may. decrease again later, Zain Vawda, market expert at. MarketPulse by OANDA, said.

Looking ahead, the U.S. Producer Price Index (PPI) and. weekly jobless claims are due on Thursday, with retail sales. information on Friday. Remarks from Fed Chair Jerome Powell and other. central bank authorities are likewise on the radar.

Area silver was steady at $30.7 per ounce. Platinum. slipped 0.8% to $938, while palladium dropped 0.8%. to $936.56.

(source: Reuters)