Gold Gains 1% Amid US Inflation Data and Iran Tensions
Gold prices rose by 1% on Wednesday as the dollar remained subdued. Spot gold was up to $4,399.45 per ounce, while US gold futures edged 0.1% higher to $4,443.20.
The muted dollar made greenback-priced metals more affordable for holders of other currencies. Market analysts are watching inflation data closely, particularly the upcoming consumer price index report on Friday.
Renewed tensions between the US and Iran have also kept investors focused on interest-rate outlook. Brent crude prices jumped for a fourth consecutive session, with higher energy costs potentially putting upward pressure on inflation.
According to Kelvin Wong, senior market analyst at OANDA, there is 'a tug of war in the short term between the bulls and the bears.' He expects this movement to continue until the end of the week when the CPI report is released.