Gold prices hit one-month high; key $2,700/oz level breached
Gold prices rose to a one-month high Thursday, tracking a drop in the dollar and Treasury yields as mildly softer consumer inflation data spurred bets on lower interest rates this year.
AT 08:40 ET (13:40 GMT), Spot gold rose 0.6% to $2,712.00 an ounce, while gold futures expiring in February rose 0.8% to $2,740.49 an ounce.
The yellow metal broke above $2,700 an ounce for the first time since early December, amid some bets that softer inflation and a cooling labor market will allow the Federal Reserve to cut interest rates further this year.
But more gains in gold were limited by diminished safe haven demand, after Israel and Hamas signed a U.S.-brokered ceasefire.
But gains in gold were limited by easing safe haven demand, especially after the Israel-Hamas ceasefire. The Middle East conflict had been a key driver of gold demand in 2024.
The yellow metal was also pressured by a rally in broader risk-driven assets, as the prospect of US rate cuts boosted risk appetite.
Traders were also on edge after US retail sales increased at a slower than anticipated month-on-month rate in December, in the latest data point that could paint a picture of the state of American economy heading into the new year.
Retail sales grew by 0.4% last month, down from an upwardly revised pace of 0.8% in November. Economists had called for a reading of 0.6%.
Other precious metals also headed higher, having seen gains on this week’s inflation readings. Platinum futures rose 0.9% to $953.75 an ounce, while silver futures rose 0.8% to $31.788 an ounce.
Source: Investing.com
