Gold Price Today, 13 July- Gold inches higher on lower US dollar; traders eye UK GDP, US PPI data

Gold Price Today, 13 July: Gold inches higher on lower US dollar; traders eye UK GDP, US PPI data

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading higher on Thursday, while the silver rate is high by 0.44%. On Multi Commodity Exchange, gold August futures were trading at Rs 59, 268 per 10 grams, higher by Rs 80 or 0.14%. Silver September futures were trading higher by Rs 327 at Rs 73,873 per kg on MCX.

Gold prices advanced to a near one-month 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, according to Reuters. Spot gold was up 0.1% to $1,959.79 per ounce, hitting its highest since June 16. U.S. gold futures ticked up 0.1% to $1,964.30.

“Outside of housing, everything else was soft, with used vehicles down 0.5% and airline fares declining by 8.1%. Core CPI ex housing showed an optimistic picture, while, shelter inflation is also expected to cool down over the coming months. Though the June CPI might not prevent Fed from hiking by a quarter points during the July meeting, it has brought down the odds of another hike during the September FOMC meeting, which might aid the bullions,” Ravindra V. Rao added.

Gold to remain volatile

“Gold and silver were up by more than  0.5% and 3.5% respectively in yesterday’s session as U.S. inflation data raised hopes that the Federal Reserve could soon stop tightening its monetary policy. Dollar Index is once again seen hovering below 101 mark, while US Yields also was down by more than 2%. 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. US CPI was reported at 3% against the previous data of 4%; while Core CPI was reported at 3.8% against previous data of 5.3% (YoY) increasing the hopes for an ease off in rate hike cycle,” said Manav Modi, Research Analyst Commodities and Currencies at MOFSL.

“However, not much of a change was seen in the probability chart for the next Fed meeting, as it continue to show a 90% chance for a 25bps rate hike in July meet. U.S. Treasury Secretary Janet Yellen’s trip to China has raised hopes in Beijing that Trump-era tariffs on Chinese imports may be eased as she tries to smooth relations between the two nations. India meanwhile restricted imports on plain gold jewellery and articles, as the world’s second-largest consumer of the precious metal tries to plug loopholes in its trade policy and help cut import of non-essential items. Focus now shifts to UK GDP and U.S. PPI data points,” Manav Modi added.