Gold rose to an 8-month high as investors awaited inflation data

Gold rose to its highest level in eight months on Wednesday, supported by the dollar’s decline, but it is still moving in a relatively narrow range as investors await inflation data that may affect the Federal Reserve (US Central Bank) raising interest rates.

And by 0615 GMT, spot gold prices rose 0.3 percent, the highest since May 2022.

And US gold futures rose 0.6 percent to $ 1887.60 an ounce.

The dollar index fell 0.1 percent, making the dollar-denominated metal cheaper for buyers abroad.

US benchmark 10-year bond yields also fell.

Gold is considered a hedge against inflation, but it is highly sensitive to raising interest rates, which increase the opportunity cost of holding the precious metal, which does not yield a return.

Federal Reserve official Michele Baumann said on Tuesday that the central bank will have to raise interest rates again to combat rising inflation, which will likely lead to more fragile labor market conditions.

As for other precious metals, silver increased in spot transactions by 1.2 percent, to $ 23.89 an ounce. Platinum rose 0.7 percent to $1,088.00 an ounce. Palladium fell 0.4 percent to $1,773.88 an ounce.