Dollar Decline Pushes Gold Higher Ahead of U.S. Inflation Data
Gold rose on Monday morning, supported by a weaker dollar and lower oil prices, as markets await U.S. inflation data this week.
Gold prices rose on Monday morning as markets reacted to a weaker dollar and falling oil prices, while investors await U.S. inflation data for signals on the path of monetary policy.
By 02:53 GMT (05:53 Baghdad time) the spot price of gold had risen 0.3% to $4,206.01 an ounce, after touching its highest level since October 2 earlier in the session.
U.S. gold futures for December delivery likewise rose 0.3% to $4,230.40 an ounce.
Markets attributed the rise in gold to the dollar's decline, which makes the precious metal cheaper for holders of other currencies, and to falling oil prices amid expectations of increased Russian supplies after U.S. President Donald Trump announced a ceasefire in the energy sector between Russia and Ukraine.
Markets are awaiting the U.S. Consumer Price Index on Wednesday, followed by producer prices and retail sales data on Thursday, as they monitor the impact of inflation indicators on interest-rate decisions.
According to the CME Group's FedWatch tool, traders estimate a 17% chance of a U.S. rate hike in October, rising to 86% by December.
Among other precious metals, silver rose 0.5% to $61.12 an ounce, platinum climbed 1% to $1,704.70, and palladium gained 1.2% to $1,161.81 an ounce.
