Spot gold jumped 1.2% at $1,898.61 an ounce, while US gold futures closed 1.1% higher at $1,898.8.
“Declining real yields and a weaker dollar have lifted gold as the two key headwinds for gold through 2022 show signs of easing”Suki Cooper, an analyst at Standard Chartered, said, adding that the Fed could raise 25 basis points in February before pausing and then cutting.
The dollar fell 1% to its lowest level since early Junewhich makes it more attractive to holders of other currencies.
Fed members were quick to point out that while the CPI numbers were moving in the right direction, they stood by their stance of taking levels back to 2%, noting that rates rose “more slowly but for longer and longer.” possibly higher.”
Federal Reserve Bank of Philadelphia President Patrick Harker and St. Louis Fed President James Bullard forecast rates to top 5% to rein in inflation, which has peaked at 9.1% in June 2022.
Investors are pricing in a roughly 90% chance of a 25 basis point hike to 4.5% or 4.8% at the next Fed meeting.
Spot silver jumped 2% $23.89 per ounce, platinum rose 0.1% to $1,071.40while palladium gained 0.7% au$s1.785.68.
Source: Ambito
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