Gold prices firmed on Thursday after hitting a one-month high, helped by softer US inflation data that reignited hopes for interest rate cuts. However, a ceasefire agreement between Israel and Hamas limited further gains.
Market highlights:
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Spot gold: After reaching its highest since Dec. 12 in early trading, it was stable at $2,696.30 an ounce at 0301 GMT.
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US gold futures: It rose 0.3% to $2,725.20 an ounce.
“Easing underlying inflation in the US has renewed expectations for Fed policy easing this year,” said Jigar Trivedi, senior analyst at Reliance Securities. “Core inflation slowed unexpectedly, but headline consumer prices did not show a large upside.''
The development of disinflation could lead the Federal Open Market Committee (FOMC) to adopt a more dovish stance, reducing the opportunity cost of holding non-yielding assets such as gold.
Key factors driving the market:
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US inflation data: The latest figures show inflationary pressures are easing, increasing expectations that the US Federal Reserve will cut interest rates at least twice this year, with the first expected in June. are.
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Dollar movement: The US dollar weakened and traded below recent highs, further supporting gold prices as bond yields fell on cooling inflation data.
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Geopolitical developments: Trivedi news agency said the ceasefire agreement between Israel and Hamas, which included the release of the hostages, has made Kim some less attractive as a safe haven.
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Economic uncertainty: Despite easing inflation, concerns persist that the possibility of tariffs by the next U.S. administration could reignite inflationary pressures.
Other precious metals:
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Spot silver: It fell 0.2% to $30.61 an ounce.
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palladium: It fell 0.3% to $958.50 an ounce.
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platinum: Stable at $938.25 per ounce.
Cooling inflation data and geopolitical developments will keep investors closely monitoring central bank signals and global events to determine how gold will behave in the coming months.
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