Gold rises to nine-month highs above $1,900 an ounce

By: News Team

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Gold rises as traders await U.S. employment data

The price of gold It topped the key $1,900 on Friday, reaching its highest level since late April, after a surprise decline in U.S. consumer prices boosted bets on a slowdown in Federal Reserve interest rate hikes.

Spot gold was up 0.4 percent at $1,905.19 an ounce at 1008 GMT. The metal is up 2.1% so far this week, heading for its fourth straight weekly gain. U.S. gold futures gained 0.5 percent to $1,907.90.

“Should the Federal Reserve fail to counter market expectations that top rates in the U.S. are close and an eventual rate cut remains on the table, that could tempt gold bulls to focus their sights on the $2,000 level,” Han Tan said. chief market analyst at Exinity.

Gold prices rose as much as 1.3% on Thursday to cross the $1,900-per-ounce threshold for the first time since early May 2021, after data showed U.S. consumer prices fell for the first time in more than two-and-a-half years in December.

Bullion was also supported by comments from Fed officials that the central bank could slow the pace of its interest rate hikes as inflation slowed further in December. However, they warned that rates would likely stay higher for longer.

Lower interest rates are often beneficial for bullion, as they reduce the opportunity cost of holding a non-interest-bearing asset.

The dollar was lower, which further helped bullion, as a weaker greenback makes the metal cheaper for buyers with other currencies.

Among other precious metals, silver cash was down 0.1 percent at $23.76 an ounce, while the platinum It rose 0.1 percent to $1,068.42. Both metals were headed for a weekly decline. The palladium It gave up 0.6 percent at $1,781.00.

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