The prices of gold they keep close to highest levels in three weeks this Wednesday, July 12, generating oroptimism among investors after knowing the inflation data in the US, which could have an impact on future decisions of the Federal Reserve with respect to interest rates and in the face of a marked depreciation of the dollar.
Spot gold records an increase of 0.1%, reaching US$1,934.07 per ounce, while US gold futures show an increase of 0.6%, standing at u$s1,948.70 an increase of $11.60.
During the session, gold prices reached its highest level since June 20coinciding with un dollar index at two-month lowsmaking the precious metal cheaper for foreign buyers.
According to Fawad RazaqzadaCity Index market analyst, the general weakness of the US currency suggests investors are anticipating a weaker inflation report. So it was.
As for other precious metals, the silver cash registers an increase of 0.2%, reaching US$23.16 per ounce; platinum shows an increase of 1.1%, standing at u$s933.94; and palladium presents an improvement of 0.8%, reaching US$1,261.58.
Gold, dollar and inflation data in the US
He Consumer price index (CPI) of The United States fell to 3% in June year-over-year, vs. to the 4% registered in May, according to data published this Wednesday by the US Bureau of Labor Statistics. This movement was slightly lower than anticipatedas 3.1% was expected.
For his part, core inflation, which excludes food and energy, fell five tenths to 4.8%, while the market consensus pointed to 5%. In this context, Wall Street futures rise up to 1%.
For his part, The dollar registers two-month lows at the beginning of the trading day this Wednesday in Europewhile the pound sterling registers new 15-month highs given the expectations of new interest rate hikes in the United Kingdom.
This Wednesday, the dollar index, which follows the evolution of this currency with respect to a basket of six other main currencieses, down 0.3% to 101,140, extending losses recorded since the start of the week after several Fed members indicated that the central bank was nearing the end of its monetary policy tightening cycle.
Since gold is quoted in dollars, further US currency weakness makes bullion more affordable for foreign buyers.
Source: Ambito
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