Gold prices edged higher today, April 12, as the dollar pulled back, with investors focussing on key US consumer price index data due later today for indications on how close interest rates are to peaking.
"Gold pice in the Multi Commodity Exchange (MCX) is hovering above the bullish crossover of five and 10-day Exponential Moving Average, which could support the precious metal to rise further towards 61,100. Only a close below 59,900 would bring a correction in the trend," the brokerage said. On silver prices, it said, "Silver in MCX is expected to march towards 76200 as long as it sustains above the key support at 74200."
Although while equity markets stayed flat over the past year, ending on March 30, 2023, gold prices have generated gains of almost 14%.
Good US job data reported last week increased betting that the US central bank will increase interest rates next month. According to the CME Fed-Watch tool, markets are pricing in a probability of over 70% for a 25 basis-point increase.
During the intraday peak today, spot gold was up 0.1 percent, trading at $2,005.18 per ounce. US gold futures increased by 0.1% to $2,020. Spot silver remained unchanged at $25.06 per ounce, platinum increased by 0.3% to $997.49, while palladium increased by 0.7% to $1,456.08 per ounce.
When the dollar index fell by 0.1%, buyers holding foreign currencies could purchase bullion at a reduced price.
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