Gold prices climbed in European trade on Thursday, resuming their upward trajectory after a two-day pause and nearing four-week highs as the dollar weakened.
The increase comes ahead of key US retail sales data, which could offer insights into the US economy's health in the third quarter and influence expectations for future US interest rate cuts.
Prices
Gold prices rose by 0.45% today, reaching $2,458 an ounce, with a session low of $2,446.
On Wednesday, gold retreated by 0.7%, pulling back from its four-week high of $2,479.
The Dollar
The dollar index declined by 0.1% on Thursday, marking its fifth consecutive session of losses against a basket of major currencies.
A weaker dollar enhances the appeal of dollar-denominated gold futures, making them more affordable for investors holding other currencies.
US Inflation
Recent US consumer price data revealed that inflation has fallen below 3% for the first time since 2021.
This development has increased the likelihood of significant Federal Reserve rate cuts later this year.
US Rates
According to the Fedwatch tool, the probability of a 0.5% interest rate cut by the Federal Reserve has risen from 49% to 65%, while the chance of a 0.25% rate cut is now at 35%.
Comments