Gold prices increased with the decline of the dollar today, after declining more than 1 percent in the previous session, while investors await this week US inflation data that may affect the course of monetary policy of the Federal Reserve (US Central Bank).
Spot gold rose 0.2 percent to $1,994.48 an ounce by 00:36 GMT. US gold futures rose 0.1 percent to $1,994.60. The dollar index fell 0.1 percent, making the yellow metal cheaper for buyers of other currencies, reports Al-Rai daily.
Investors are awaiting US consumer price data, which is scheduled to be released tomorrow, Wednesday, in search of more clarity regarding the direction of interest rates during the US Central Bank’s monetary policy meeting in May.
A strong employment report in the United States released on Friday raised bets that the US central bank will raise interest rates next month, with the market expecting a 71.3 percent increase of 25 basis points, according to CME’s Videowatch service. The opportunity cost of holding non-yielding gold rises as interest rates rise to rein in inflation.
As for other precious metals, silver rose 0.1 percent to $24.91 an ounce, while platinum rose 0.3 percent to $994.64, and palladium rose 1.3 percent to $1429.54.
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