CHICAGO – Gold futures on the COMEX division of the New York Mercantile Exchange rose on Friday as US inflation data is hotter than expected.
The most active gold contract for April delivery rose 9.20 U.S. dollars, or 0.46 percent, to close at 2,024.10 dollars per ounce.
The US Labor Department reported Friday that US producer price index, a measure of prices received by producers of domestic goods and services, rose 0.3 percent in January, the biggest move since August.
Hotter than expected inflation data boosted market expectations that the Federal Reserve is unlikely to cut rates before June, dampening US dollar and supporting gold instead.
Speaking at a National Association for Business Economics event on Friday, Federal Reserve Vice Chair for Supervision Michael Barr said the Federal Reserve needs to see more data indicating inflation is heading back to 2 percent before it begins lowering interest rates.
Barr supports Fed Chair Jerome Powell’s careful approach to rate cuts.
Other economic data released Friday were mixed. The preliminary reading of University of Michigan consumer sentiment index ticked up to 79.6 in February from 79 in January. The small gain followed two months of sharp increases that were the largest in more than 30 years.
The US Commerce Department reported that U.S. construction of new homes fell 14.8 percent in January, as home builders scaled back new projects. And housing starts fell to a 1.33 million annual pace from 1.56 million in December.
Silver for March delivery rose 52.40 cents, or 2.28 percent, to close at 23.475 dollars per ounce. Platinum for April delivery rose 8.30 dollars, or 0.92 percent, to close at 913.50 dollars per ounce.
Credit: Source link
