Gold rises, hovers near $1,900 mark as US inflation data weigh on markets
Gold rose on Friday trade in Asia and is en route to a small weekly gain. The slightly quicker-than-expected hike in U.S. inflation made investors bet to the tendency that price pressures will be temporary and central bank support will remain.
Gold futures advanced 0.33% to $1,902.70 by 1:05 AM ET, after hitting $1,916.64, the highest intraday level since Jan. 8, 2021, last week.
U.S. inflation data released on Thursday reflected an increased core consumer price index (CPI) as it posted a higher-than-expected 3.8% year-on-year. It expanded 0.7% month-on-month, which was above expectations but below April’s growth.
Furthermore, investors also focused on the European Central Bank (ECB)’s policy decision announced on Thursday. The U.S. Federal Reserve is also due to announce its policy decision next week.
In other precious metals, silver steadied at $27.96, while palladium dropped 0.5%. Platinum lowered 0.1%.