Gold prices rose slightly today, Wednesday, as the dollar weakened and as investors focused on important US inflation data, which is due to be published later in the day, to get indications of how close interest rates are to a peak.
Gold in the spot market rose 0.1% to $2005.18 an ounce by 0051 GMT, while US gold futures rose 0.1% to $2020.10.
The dollar index fell 0.1 percent, making the precious metal cheaper for holders of other currencies.
All eyes are on US CPI data due at 1230 GMT for clues on the path of US interest rates.
Philadelphia Fed President Patrick Harker said on Tuesday he still believes the US central bank should raise interest rates above 5 percent and keep them at that level to rid the economy of inflation.
A strong employment report in the United States last week raised bets that the Federal Reserve (the US central bank) will raise interest rates next month. CME Group’s Videowatch service shows that markets expect 68.9% of interest rates to be raised by 25 basis points.
Gold is considered a haven to hedge against inflation, but high interest rates reduce the attractiveness of the non-yielding metal.
As for other precious metals, silver was unchanged at $25.06 an ounce, while platinum rose 0.3 percent to $997.49, and palladium rose 0.7 percent to $1,456.08.
