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Gold prices rose on Thursday, as concerns about an anticipated reduction in economic support eased after data revealed that consumer price inflation in the United States slowed in July, lowering the dollar.
And gold rose 0.1% in spot trades to $ 1,753.90 an ounce at 0642 GMT, after registering its biggest percentage gain since May 6 on Wednesday. US gold futures rose 0.2% to $ 1,756.30.
Data on Wednesday showed that consumer price increases in the United States slowed in July, but remained at their highest level in 13 years on an annual basis.
Meanwhile, a growing number of U.S. central bank officials are examining how and when they should start cutting back on massive asset purchases in the era of the pandemic.
While the recovery in the labor market is an important criterion for the Fed to scale back its asset purchase program and raise interest rates, it views current inflationary pressures as temporary.
Gold is considered a hedge against inflation. But the yellow metal is very vulnerable to rising US interest rates, which increases the opportunity cost of holding unproductive gold while strengthening the dollar.
At the same time, the dollar index consolidated below its highest level in more than four months, which it reached on Wednesday.
As for other precious metals, silver fell 0.5% to $ 23.41 an ounce. Platinum fell 0.4% to $ 1,013.23 and palladium was up 0.1% to $ 2,639.56.
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