Gold prices slightly higher as investors await U.S. inflation data

NEW YORK (June 13) Gold prices traded slightly higher on Tuesday as investors awaited the release of the U.S. May consumer-price index, an closely watched gauge of inflation, ahead of a Federal Reserve interest rate decision on Wednesday.

Price action

• Gold prices for August delivery GC00, 0.16% GCQ23, 0.16% gained $9.60, or 0.5%, to $1,979.40 per ounce on Comex.
• Silver for July delivery SI00, 0.65% SIN23, 0.65% rose by 23 cents, or 1%, to $24.29 per ounce.
• Palladium for September delivery  PAU23, 2.38% gained $26, or 2%, to $1,368 per ounce, while July platinum PLN23, -0.15% fell by $1.30, or 0.1%, to $994 per ounce.
• Copper for July delivery HGN23, 2.48% gained 8 cents, or 2%, to $3.83 per pound.

What’s happening

Softer-than-expected May U.S. inflation data could help push gold prices back above the $2,000 per ounce level, market analysts said.

“…A colder-than-expected inflation report might be a nightmare for the U.S. dollar but a blessing for assets such as stocks and gold, which usually benefit from expectations of lower interest rates,” said Marios Hadjikyriacos, senior investment analyst at XM, in emailed commentary.

“A hotter-than-expected CPI could have the opposite effects, helping to boost the greenback while punishing equities and gold prices.”

MarketWatch