Gold prices slip as US dollar firms

Gold futures dropped today, June 9, as the US dollar stabilized amid fears of accelerating US inflation, which would push the Federal Reserve to further raise interest rates, increasing the opportunity cost of holding the precious metal.

Gold futures contracts for August delivery fell 0.33% to $1,850.50 an ounce at 11:40 am Makkah time, with spot prices also down 0.28% to $1,847.93 per ounce.

Elsewhere, silver futures for July delivery declined 0.61% to $21.96 an ounce. In addition, the spot price of platinum plunged by 2.33% to $982.46, while the spot price of palladium settled at $1,941.99.

The main dollar index, which measures the performance of the US currency against a basket of six currencies, reached 102.64 points.

All eyes are on the release of minutes of the European Central Bank’s meeting due later today, which is expected to affirm the bank’s stance on raising interest rates next month after the Eurozone’s inflation hit a record high in May.

Markets are also anticipating US inflation data for May, with expectations that the annual inflation rate will reach 8.3%.