The ounce price of gold is on a limited rise today due to the uncertainty about the Fed’s interest rate increase before the PPI data is to be announced tomorrow in the USA.
Gold prices are flat/high before the PPI data, which will be announced in the US on Friday and will signal the Fed’s interest rate path.
Gold has been negatively affected by the Fed’s aggressive tightening policy and the rise in the dollar this year. In the last few days, it has recouped some of its losses on the expectation that the Fed will slow its rate hike path.
The ounce price of spot gold, which rose by 0.1 percent yesterday, is at $ 1,773, with an increase of 0.1 percent today. The Bloomberg Dollar Spot Index is flat after rising 0.3 percent in the previous session. Silver, platinum, and palladium are on the rise.
Commtrendz Risk Management Manager Gnanasekar Thiagarajan stated that the rally in gold prices could last at least until the Fed meeting, adding, “There may be some upward movements before the meeting.”
Markets expect the Fed to slow the rate hike at its December meeting and continue with a 50 basis point increase.
Oanda Senior Analyst Edward Moya shared his forecast for gold to consolidate around $1,760.