Gold prices up ahead of US inflation data release this week

Gold prices gained today, June 6, supported by a weakening US dollar ahead of this week’s release of US inflation data and minutes of the European Central meeting.

Gold futures contracts for August delivery rose 0.27% to $1,855.30 an ounce at 10:58 am Makkah time, while spot prices settled at $1,853.16 per ounce.

Elsewhere, silver futures for July delivery increased 1.83% to $22.31 an ounce. The spot price of palladium also surged by 2.60% to $2,026.74, with the spot price of platinum also up 1.35% to $1,026.49.

Meanwhile, the main dollar index, which measures the performance of the US currency against a basket of six currencies, fell 0.21% to 101.94 points.

Following the release of the US employment data last week, investors are eyeing an announcement on the consumer price index (CPI) report for May amid expectations for the index to rise slightly by 0.7%.

The continued acceleration of inflation in the US will enhance forecasts of a rate hike by the Federal Reserve at its next meeting, which will push the US dollar to rise and, in turn, further pressure the precious metal due to the inverse relationship between them.

Accordingly, Cleveland Federal Reserve President Loretta Meester said, in an interview with CNBC on Friday, June 3, that she supports a series of strong interest rate hikes until inflation returns to the 2% target, noting that inflation has not yet reached its peak.