12/01/2023
Investors’ focus is on the US consumer price index (CPI) data for December due today at 1.30pm GMT.
If the inflation report is supportive for gold, then prices could move up to the $1,900 level, but there might be some profit taking after that.
Gold prices ticked higher on Thursday, aided by a softer dollar, while market participants awaited key US inflation data that could influence the Federal Reserve’s policy path.
The Fed had raised rates by 75 basis points (bps) four times last year, before slowing to a 50 bps increase in December.
Though gold is seen as an inflation hedge, rising rates increase the opportunity cost of holding bullion.
The dollar index dipped 0.1%, a weaker dollar makes greenback-priced bullion more appealing to other currency holders. Spot gold was up 0.4% to $1,883.95 per ounce. US gold futures also rose 0.4% to $1,886.50.
