© Reuters. Gold rises on US consumer price data
Arabictrader.com – It rose on Tuesday after data showed US consumer prices rose by the most in 13 years last month, although the dollar’s rally kept its gains in check.
Spot gold rose 0.4% to $ 1,813.11 an ounce, US gold futures rose 0.5% to $ 1814.30, and the closely watched rose 0.9 percent last month, compared to expectations for a 0.5 percent rise by economists polled by Reuters.
But analysts said the data was unlikely to trigger a rapid monetary tightening response from the Fed, providing some support for the non-rising metal.
It would take a series of those numbers in inflation readings to trigger interest for the Fed, and Jim Wyckoff, chief analyst at Kitco Metals, said a one-month reading wouldn’t, adding that the Fed would also take employment and growth readings into account.
However, markets will now look to Wednesday and Thursday for any clues about the central bank’s eventual reduction in asset purchases, said Fouad Razakzadeh, an analyst at ThinkMarkets, with transportation costs also rising and oil prices continuing to rise, there is a risk that inflation will remain high. stubbornly for longer than the Fed imagines.
He added: If the current trend of inflation continues, it is certain that the central bank will have to act sooner, which weighs on gold, and to limit the gains of gold, and it rose by 0.3% against its competitors, which reduced the attractiveness of gold to holders of other currencies. American dollar
It is worth noting that the weak demand for physical gold in India, in addition to other centers, during the past week with the rise in the price of the yellow metal. Data from the US Commodity Futures Trading Commission also reported that speculators increased their net long positions in gold and silver in the week ending July 6th.
Elsewhere, it fell 0.8% to $2,833.11 an ounce, while platinum rose 0.3% to $1,120.57.
StoneX analyst Rona O’Connell said continued pressure in the global auto market, due to a shortage of semiconductors, could cut about 200,000 ounces of platinum demand growth in the auto sector this year, and up to 400,000 ounces in palladium.