Gold prices end in red as traders await US inflation data

Gold prices deepened their losses at settlement today, May 13, as investors awaited this week’s release of US producer and consumer inflation data, seeking more clues on when the Federal Reserve would end its monetary tightening cycle.

Bullion for June delivery plunged by 1.35%, or $32, at $2,343 an ounce.

Additionally, the US dollar index, which gauges the greenback's strength against a basket of six currencies, shed nearly 0.1% to stand at 105.22 points at 08:46 pm Makkah time.

Lower bullion prices stemmed from investors taking profits to benefit from the yellow metal’s gains, which rose last week by about 2.9%, following weak US jobs data, which buoyed bets on interest rate cuts this year.

Monthly data on the US producer price index for April is due tomorrow, May 14, with expectations for a 0.3% rise after increasing by 0.2% in March. This is a day before the issuance of its counterpart reading for consumer prices, as forecasts suggest a 3.4% hike on an annual basis after hitting 3.5% in March.