Shafaq News/ Gold prices ticked up on Thursday, aided by a weaker dollar and economic worries, while investors seek further clarity on the U.S. Federal Reserve’s monetary policy path.
Spot gold rose 0.2% to $2,032.58 per ounce as of 0131 GMT. U.S. gold futures were also up 0.2% at $2,041.80.
The dollar index slipped 0.1%, making the dollar-priced bullion more affordable for overseas buyers. [USD/]
“Whilst gold remains supported overall, it doesn’t look overly happy at these highs and investors seem quick to book profits with any break above $2,050 for now,” said Matt Simpson, senior market analyst at City Index.
Bullion prices initially rose on Wednesday after U.S. inflation data was released, before turning negative on profit taking.
The annual increase in U.S. consumer prices slowed to below 5% in April for the first time in two years, potentially providing cover for the U.S central bank to pause a interest rate hike next month.
Markets are currently pricing in a 95% chance of the Fed holding rates at their current level in June.
Meanwhile, U.S. President Joe Biden piled pressure on Republican lawmakers on Wednesday to move quickly to raise the country’s $31.4 trillion debt ceiling or risk throwing the world’s largest economy into a recession.
“The debt ceiling debacle seems to have thrown a floor under gold prices. But that’s not to say it may sell off sharply should the ceiling be raised whilst the Fed are in pause mode and investors are on the hunt for weak U.S. data,” Simpson added.
Spot silver fell 0.2% at $25.37 per ounce, platinum edged 0.2% higher to $1,115.92, while palladium lost 0.2% at $1,604.23.
