Gold prices rose today, Friday, amid a decline in the "green" dollar. However, the gains were limited after data showed an increase in inflation in the United States. By 06:26 GMT, spot gold increased by 0.2% to $1829.61 per ounce. U.S. gold futures also rose by 0.2% to $1827.40 per ounce. Meanwhile, the dollar index fell by 0.1% against other major currencies, making gold cheaper for holders of other currencies.
Stephen Innes, managing partner at SPI Asset Management, stated, "Inflation is not necessarily negative for gold, but it's negative when central banks start to act on it, and the market becomes somewhat anxious considering this could lead to a slight advance in the timing of the U.S. Federal Reserve's rate cuts."
Significant economic data from the United States this week showed a larger-than-expected rise in consumer prices and a decline in weekly jobless claims to their lowest level in 14 months, which fueled concerns about rising inflation and the likelihood of interest rate hikes. Higher interest rates increase the opportunity cost of holding gold. Investors are now awaiting U.S. retail sales data set to be released later today.
