admin
SINGAPORE. — Gold was trading near its highest in a week yesterday, adding to overnight gains from its biggest jump in nearly a month, as sluggish US inflation data eased the fear the US Federal Reserve would hike interest rates later this session. Spot gold had ticked up 0,1 percent to $1 120,60 per ounce at 3.45am GMT, near a one-week high of $1 124,30 reached in the previous session. The metal gained 1,3 percent on Wednesday in its biggest daily jump since August 20.
“All eyes are on the Fed’s interest rate decision later today which is the most anticipated announcement in years by the central bank,” MKS Group precious metals trader James Cerisola said. “A short squeeze across the precious complex prior to the FOMC (Federal open market committee) caught the market off guard,” he said.
Prices got help from data on Wednesday that showed US consumer prices unexpectedly fell in August. Softness in the dollar, following the inflation data, also supported gold prices. Signs of a disinflationary trend reasserting itself are in stark contrast with a fairly healthy economy and a rapidly tightening labour market, and highlight the dilemma Fed officials face as they contemplate raising interest rates for the first time in nearly a decade. — Reuters.
Online Reporter