Gold prices end higher on US dollar drop

Gold prices ended on a high note today, June 15, after the US dollar and Treasury yields declined following the release of some US economic readings.

Economic data showed that last week’s initial jobless claims held ground at their highest levels since October 2021, reaching 262,000 applications, unchanged from the previous week's reading.

Elsewhere, the Fed revealed that the Industrial Production Index shed 0.20% in May on a monthly basis, after two consecutive months of increases, against expectations for a 0.1% rise.

In a policy meeting that ran from June 13-14, the US central bank fixed the key rates at the 5-5.25% range. While this reflected progress in the inflation fight, it also indicated subsequent hikes later this year.

Policymakers expect interest rates to drop later to 4.6% by the end of 2024, then 3.4% by later 2025.

They also anticipate the Personal Consumption Expenditures Price Index would dip to 2.1% in Q4 2025 on an annual basis, with the unemployment rate climbing to 4.5% during the same period.

At settlement today, bullion for August delivery ticked 0.10% higher, or $1.80, to $1,970.70 an ounce, after touching $1,936.10 in early trading.

Meanwhile, the US dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.75% to 102.16 points at 08:43 pm Makkah time — the lowest in a month.