Gold prices scale 8-month peak ahead of US inflation data

Gold prices closed at an eight-month high today, Jan. 11, as markets brace for US inflation data — due tomorrow — to gauge the Federal Reserve's policy path.

The greenback-priced bullion benefits from investor optimism about rising demand, supporting the reopening of China's economy with the easing of zero-COVID curbs.

The Fed, according to HSBC, is poised to make a final interest hike at the forthcoming Jan. 31-Feb. 1 monetary policy meeting. Accordingly, rates will increase by 50 basis points (bps) to a 4.75-5.00% range, Reuters reported, citing a research note by the bank issued today.

US Inflation data is due tomorrow, Jan. 12, amid expectations that the pace of price growth will continue to slow.

Gold prices for February delivery rose 0.1%, or $2.40, to $1,878.90 an ounce at today’s settlement.

The US dollar index, which gauges the greenback's strength against a basket of six currencies, settled at 103.276 points at 9:55 pm Makkah time.