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Gold wanders greater, traders eye US inflation print

Gold rates edged up on Wednesday as investors searched for bargains after high decreases in the previous session, while spotlight shifted to U.S. inflation print, which could shed more light on the Federal Reserve's. financial policy path.

Spot gold increased 0.4% at $2,608.18 per ounce by 0200. GMT, after hitting its most affordable given that Sept. 20 on Tuesday. U.S. gold futures was up 0.3% at $2,614.10.

There is presently some bargain hunting going on as rates. fell below the $2,600 mark. Recent sessions saw gold adversely. affected due to a stronger dollar, driven by expectations of. inflationary Trump policies impacting the rate cut cycle, stated. Kelvin Wong, OANDA's senior market expert for Asia Pacific.

Traders see a 60.3% possibility of a 25-basis-point cut at Fed's. December meeting, down from 77.3% a week ago, according to CME's. FedWatch Tool.

Gold is utilized as a hedge versus inflation however higher rates. moisten its appeal as it yields no interest.

Market focus is on U.S. Consumer Price Index (CPI) data due. at 1330 GMT. Other data sets due this week include Manufacturer. Cost Index (PPI), weekly unemployed claims on Thursday and. Friday's retail sales data.

If the CPI and PPI numbers reveal that inflation trend is. still basically contained, then gold might make a move up. towards $2,650, added Wong.

Remarks from Fed Chair Jerome Powell and other U.S. main. bank officials are likewise on investors' radar.

The Fed's policy rate continues to function as a brake on the. resistant labor market and on inflation that is still above the. 2% target, two U.S. main lenders stated on Tuesday.

Area silver rose 0.7% at $30.91 per ounce after. striking a one-month low in the previous session.

Platinum included 0.5% to $952.80 and palladium. nudged 0.7% greater at $951.13.

(source: Reuters)