Gold Gains In Asia With Focus On US Consumer Prices Data


© Reuters. Gold up in Asia

Investing.com – Gold prices ticked higher in Asia on Wednesday with all eyes focused on US consumer price data ahead for fresh cues on the likely path of interest rate hikes by the Fed.

for February delivery on the Comex division of the New York Mercantile Exchange rose 0.54% to $1,337.60 a troy ounce. US CPI for January is seen up 0.3% and 1.9% .

Overnight, gold prices hovered above breakeven supported by ongoing dollar weakness ahead of an inflation report which could strengthen the Federal Reserve’s case for more aggressive monetary policy tightening.

The dollar fell for a second straight day in row pressured by large gains in both the euro and yen, helping gold prices remain steady a day ahead of an inflation report which could offer markets with fresh direction.

Dollar-denominated assets such as gold are sensitive to moves in the dollar – A fall in the dollar makes gold cheaper for holders of foreign currency and thus, increases demand for the precious metal.

Also supporting gold prices was a uptick in demand ahead of the start of the Chinese New Year which usually ushers in gift buying in the form of gold jewellery. The biggest demand for gold is for use in gold jewellery which accounts for roughly 50% of total demand, according to the World Gold Council.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Comments

comments