Gold moves and consolidates its gains after US inflation data

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Wednesday, May 15, 2024 - 16:19
Point Trader Group

Global gold prices moved higher a short while ago after the release of US inflation data, coinciding with the decline in the US dollar index.

The yellow metal consolidated its gains, and gold futures rose by 0.66% to $2,375 per ounce.

While spot gold contracts rose by about 0.51% to $2,370 per ounce.

This rise in trading today, Wednesday, comes after reading inflation data in the United States, which could provide evidence of the path of reducing interest rates by the US Federal Reserve.

The data show that core inflation in April rose by 0.3% on a monthly basis, down from 0.4% in the previous month.

Technically, the next upside price target for gold futures investors is a June contract close at $2,400.00, Kitco Metals Senior Analyst Jim Wyckoff wrote in a note.

In addition, the dollar fell 0.5% against a basket of currencies to record its lowest levels in more than a month, making gold more attractive to holders of other currencies. 10-year Treasury yields also reached their lowest level in more than a month.


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