Gold prices rose on Monday as investors awaited the release of key U.S. inflation data, which could provide additional insight into the U.S. Federal Reserve’s next policy move.
In the UAE, gold prices rose AED0.25 with 24-carat gold inching up to AED294.75 while 22-carat gold remained stable at AED272.75. Meanwhile, 21-carat gold reached AED264.25 and 18-carat gold reached AED226.50.
Globally, spot gold edged up 0.23 percent to $2,433.58, as of 5:04 GMT. Meanwhile, U.S. gold futures fell 0.04 percent to $2,472.30.
U.S. inflation dataÂ
Gold prices rose as markets awaited the release of the U.S. consumer price index (CPI) data, due on Wednesday, which will likely show that headline and core prices rose 0.2 percent month-on-month. Market analysts stated that progress on inflation could support gold prices to retest a new all-time high once more.
The market now sees a 54 percent chance of a 50 basis point interest rate cut at the Federal Reserve’s September meeting, according to the CME FedWatch Tool.
Fed Governor Michelle Bowman said on Saturday that she welcomes any progress on inflation even though she believes that it remains uncomfortably above the Fed’s 2 percent target.
In India, gold demand saw a slight increase due to a correction in prices. However, market volatility has led some buyers to delay purchases. The recent reduction in import duties on gold in India is expected to boost demand ahead of the festival season.
Read: UAE gold prices rise, global rates set for weekly drop as investors await Fed rate cut hints
Other precious metals
Despite the rise in gold prices, precious metal prices witnessed an overall decline with spot silver inching down 0.21 percent to $27.38 while platinum declined 0.01 percent to $922.10. Palladium fell 0.33 percent to $902.23 while copper lost 0.05 percent to $3.98.
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