Gold Forecast: Despite a strong dollar, gold maintains its gains

Gold forecast; After five sessions of losses, gold managed to climb a little on Wednesday, but the dollar’s rise kept prices in check as investors looked to the minutes from the U.S. Federal Reserve’s most recent policy meeting.

By 1:25 p.m. EDT, spot gold increased 0.2% to $1,669.20 per ounce (1725 GMT). United States gold futures fell 0.5% to $1,676.80.

Data indicated that U.S. producer prices (PPI) rose more than anticipated in September, indicating that inflation may continue to be uncomfortably high for some time.

Better-than-expected According to Bob Haberkorn, senior market strategist at RJO Futures, PPI data usually lifts gold prices, but since the Fed is anticipated to keep raising interest rates to combat inflation, Yellow metal is currently in a slightly defensive position.

Following the release of the data, the dollar index increased and is now hovering close to a two-week high, decreasing the appeal of gold for holders of other currencies. Standard U.S. 10-year Treasury yields also increased a little. [USD/] [US/]

On Wednesday at 1800 GMT, the Fed’s most recent meeting minutes are due. On Thursday, consumer price index data are due, and it is anticipated that these numbers will continue stubbornly high.

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According to Haberkorn, the Fed will ultimately be what drives gold, therefore it will likely remain in its current range until we receive more information from them.

In an effort to contain rising price pressures, the U.S. central bank has aggressively boosted interest rates since March.

In an effort to contain rising price pressures, the U.S. central bank has aggressively boosted interest rates since March.

“Gold and silver look set to benefit from the eventual turnaround in the dollar and yields, which is why the continued focus on inflation and economic data for a sign of any weakness to support a shift in the hawkish stance being signalled by the Federal Reserve,” Ole Hansen, head of the commodity strategy at Saxo bank, wrote in a note.

Spot silver decreased by 1.3% to $18.93 an ounce, platinum decreased by 0.2% to $884.05, while palladium slid by 0.6% to $2,127.98.

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