New Delhi: gold prices Shares hit an eight-month high on Monday as a weakening dollar made the dollar cheaper for overseas buyers, while expectations of a less aggressive US rate hike also boosted sentiment.
spot gold It was up 0.7% at $1,878.55 an ounce, its highest since May 9, 2022, as of 0256 GMT. US Sleep Futures also rose 0.7% to $1,883.20.
The dollar index slipped 0.3%.
“Friday’s softening US data boosted gold’s appeal,” said Christopher Wong, strategist at OCBC FX. Can do.”
Friday’s data showed the US economy added jobs at a solid clip in December, but Fed officials could take some solace from a reduction in pay gains. In addition, US service industry activity contracted in December for the first time in more than 2-1/2 years amid weak demand, providing more evidence of easing inflation.
Higher interest rates reduce the attractiveness of gold as an inflation hedge and increase the opportunity cost of holding a non-yielding asset.
Market participants will now turn to Fed Chairman Jerome Powell’s speech at the central bank conference in Stockholm on Tuesday and US Consumer Price Index data on Thursday.
Wong said, “This week’s CPI data will be important. A further drop in price pressures could increase appetite for gold, while the dollar remains under pressure. However, an unexpected increase in CPI could rattle sentiment.”
Traders also kept an eye on the reopening of borders to top bullion consumer China, which have been almost all closed since the start of the COVID-19 pandemic.
spot silver Gold rose 0.9% to $24.03, while platinum gained 0.5% to $1,095.58, while palladium rose 0.7% to $1,817.59.
spot gold It was up 0.7% at $1,878.55 an ounce, its highest since May 9, 2022, as of 0256 GMT. US Sleep Futures also rose 0.7% to $1,883.20.
The dollar index slipped 0.3%.
“Friday’s softening US data boosted gold’s appeal,” said Christopher Wong, strategist at OCBC FX. Can do.”
Friday’s data showed the US economy added jobs at a solid clip in December, but Fed officials could take some solace from a reduction in pay gains. In addition, US service industry activity contracted in December for the first time in more than 2-1/2 years amid weak demand, providing more evidence of easing inflation.
Higher interest rates reduce the attractiveness of gold as an inflation hedge and increase the opportunity cost of holding a non-yielding asset.
Market participants will now turn to Fed Chairman Jerome Powell’s speech at the central bank conference in Stockholm on Tuesday and US Consumer Price Index data on Thursday.
Wong said, “This week’s CPI data will be important. A further drop in price pressures could increase appetite for gold, while the dollar remains under pressure. However, an unexpected increase in CPI could rattle sentiment.”
Traders also kept an eye on the reopening of borders to top bullion consumer China, which have been almost all closed since the start of the COVID-19 pandemic.
spot silver Gold rose 0.9% to $24.03, while platinum gained 0.5% to $1,095.58, while palladium rose 0.7% to $1,817.59.