Gold Rises as The Dollar Falls, Eyes on US Inflation Data

Gold prices rose to their highest in a week on Wednesday as the dollar and US bond yields fell and the precious metal received a boost as a safe haven due to tensions related to Ukraine with US consumer price data due later this week.

The price of gold in spot transactions rose 0.4 percent to 1791.40 dollars by 1055 GMT, while US gold futures increased 0.5 percent to 1793.20 dollars.

The demand for gold was increased by the decline in the US Treasury bond yields and the dollar index.

Market attention is focused mainly on US consumer price index data expected on Friday, which may affect the schedule for the Federal Reserve to reduce economic stimulus measures as it meets on the 14th and 15th of December.

US President Joe Biden has threatened to impose tough economic sanctions on Russia if it invades Ukraine.

With regard to other precious metals, silver fell in spot transactions 0.1 percent to $22.45 an ounce.

Platinum rose 0.6 percent to $957.50, and palladium fell 0.7 percent to $1839.45.