Gold Climbs on Dollar Weakness
Gold rose above $1,790 an ounce on Friday, benefiting mainly from the dollar’s weakness as investors cautiously awaited key US inflation data and the Federal Reserve’s policy decision next week.
The US producer price data due for release later today and the consumer price data scheduled for next week could shed light on the state of inflation and influence longer-term expectations for monetary policy.
The Fed is expected to deliver a more moderate 50 basis point rate hike next week after raising rates by a hefty 75 basis points in the past four meetings, and traders will be watching for signs on whether the central bank is getting ready to pause or continue tightening.
In the short term, the gold price is expected to rise to around the 1803.00 level, especially if it continues to hold above the 1787.59-1780.00 area. Meanwhile, a break below the 1780.00 level would be potential to trigger further decline to around the 1764.59 level.
The US producer price data due for release later today and the consumer price data scheduled for next week could shed light on the state of inflation and influence longer-term expectations for monetary policy.
The Fed is expected to deliver a more moderate 50 basis point rate hike next week after raising rates by a hefty 75 basis points in the past four meetings, and traders will be watching for signs on whether the central bank is getting ready to pause or continue tightening.
In the short term, the gold price is expected to rise to around the 1803.00 level, especially if it continues to hold above the 1787.59-1780.00 area. Meanwhile, a break below the 1780.00 level would be potential to trigger further decline to around the 1764.59 level.
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