Gold declines amid the rise in the dollar and anticipation of US inflation data

Gold prices fell today, after rising by more than two percent in the previous session, at a time when the dollar rose before the release of an important inflation report that could provide more indications about the path of interest rates in the United States.

Spot gold prices fell 0.4 percent to $4,961.57 per ounce by 01:12 GMT, after rising 2.1 percent in the previous session.

US gold futures for April delivery fell 0.6 percent to $4,981.

The dollar recorded its highest level in more than a week, making the precious metal priced in it more expensive for holders of other currencies.

The markets of mainland China, Hong Kong, Singapore, Taiwan and South Korea are closed for the Lunar New Year holidays, which according to traders means lower trading volumes and opportunities for fluctuations.

According to CME’s Fed Watch tool, markets currently expect three interest rate cuts of 25 basis points each this year.

Investors are awaiting the weekly report on unemployment claims scheduled to be released later today and the personal consumer spending data, the preferred inflation measure of the Federal Reserve (the US central bank), scheduled for release tomorrow, Friday, to obtain more indicators about the path of monetary policy.

Non-yielding gold usually performs well in times of low interest rates.

Gold increased by more than two percent yesterday, Wednesday, due to the demand for safe havens after two-day peace talks in Geneva between Ukraine and Russia ended without achieving any progress.

Ukrainian President Volodymyr Zelensky said he was not satisfied with the result, while Washington spoke of “tangible progress.”

As for other precious metals, silver fell in spot transactions by 0.5 percent to $76.83 per ounce, after falling by more than five percent yesterday, Wednesday.

Platinum fell in spot transactions 0.1 percent to $2,069.35 an ounce, and palladium fell 0.5 percent to $1,707.53.