Gold close to one-month high on hopes of Fed nearing end of rate hikes

Gold close to one-month high on hopes of Fed nearing end of rate hikes
# 13 July 2023 09:30 (UTC +04:00)

Gold prices advanced to a near one-month high on Thursday supported by a softer U.S. dollar, after U.S. inflation data raised hopes that the Federal Reserve would soon stop tightening its monetary policy, APA reports citing Reuters.

Spot gold rose 0.2% to $1,961.09 per ounce by 0439 GMT, hitting its highest since June 16. U.S. gold futures gained 0.2% to $1,965.90.

U.S. consumer prices rose modestly in June and registered their smallest annual increase in more than two years as inflation continued to subside, but probably not fast enough to discourage the Fed from resuming raising interest rates later this month.

Hence, a lot of focus remains on the central bank's next rate-setting meeting, which could dictate near-term gold prices, said Brian Lan of Singapore dealer GoldSilver Central.

Recent hawkish comments from policymakers have weighed on gold, with bullion down more than $100 since its May highs.

Higher interest rates increase the opportunity cost of holding non-yielding bullion, even as it is seen as a safe investment during times of political and financial uncertainties.

Among other precious metals, spot silver rose 0.3% to $24.2126 per ounce and palladium gained 1.3% to $1,299.34.

Platinum jumped to its highest since June 21, last up 1.3% to $958.91.