Gold could still move all the way down to 1,800oz analyst
Silver, platinum, palladium rise
Bullion hits highest since June 16

July 13 Reuters Gold prices advanced to a near onemonth high on Thursday supported by a softer U.S. dollar, after U.S. inflation data raised hopes that the Federal Reserve would soon stop tightening its monetary policy.

Spot gold rose 0.2 to 1,961.09 per ounce by 0439 GMT, hitting its highest since June 16. U.S. gold futures gained 0.2 to 1,965.90.

U.S. consumer prices rose modestly in June and registered their smallest annual increase in more than two years as inflation continued to subside, but probably not fast enough to discourage the Fed from resuming raising interest rates later this month.

Hence, a lot of focus remains on the central bank39;s next ratesetting meeting, which could dictate nearterm gold prices, said Brian Lan of Singapore dealer GoldSilver Central.

Recent hawkish comments from policymakers have weighed on gold, with bullion down more than 100 since its May highs.

Higher interest rates increase the opportunity cost of holding nonyielding bullion, even as it is seen as a safe investment during times of political and financial uncertainties.

Therefore, while gold could go higher closer to the 2,000 mark, chances of prices coming down is more likely this quarter, and thus 1,800 remains a possibility, Lan further said, adding the Fed could still strike a cautious tone.

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