Gold rises ahead of US central meeting

Gold rose today as the dollar fell but price movement remained narrow as traders awaited U.S. inflation data later today and the Federal Reserve’s U.S. Central Bank decision tomorrow on monetary policy.

Instant market gold rose 0.2 per cent to $1960.59 per ounce by (04:26) GMT. United States gold futures increased 0.3 per cent to $ 1974.60. The dollar fell 0.2 per cent, making gold denominated in the United States currency more attractive to other currency holders.

“The market is waiting for U.S. CPI data and the Federal Reserve Monetary Policy Committee meeting to set a clearer trend for gold prices,” said Michael Langford, director of Airgyde Corporate Consulting. But there is nothing to drive gold to outperform other categories of assets regardless of the Federal Reserve’s decision-making process on monetary policy. “

Economists polled by Reuters said the U.S. consumer price index for May was expected to show a slowing year-on-year rise in inflation to 4.1 per cent compared with 4.9 per cent in April and a monthly increase of 0.2 per cent, down from 0.4 per cent the previous month.

According to the C.S. Group ‘ M ‘ e, 81 per cent traders expect the Federal Reserve to keep interest rates unchanged, while 19 per cent expect interest rates to be raised by 25 basis points.

But the central bank of Japan, which will announce its decision on Friday, is expected to continue its monetary easing policy.

Among other precious metals, silver in spot transactions rose 0.4 per cent to $24.1395 per ounce. Platinum rose 0.5 per cent to $994.47. Palladium increased 0.9 per cent to $1,361.62.