Gold still up as US economic data sparks fresh rate cut hopes

Gold bars

Gold prices maintained their upward trajectory today, Jan. 16, after the unexpected slowdown in US core inflation raised traders hopes for additional monetary policy easing by the Federal Reserve.

February gold climbed by 0.36%, or $9.9, to $2,727.70 per ounce at 11:13 am Makkah time. Further, spot prices also edged up by 0.16% to $2,700.10 an ounce, touching the highest level since mid-December 2024.

March silver futures, likewise, rose 0.82% to $31.79 an ounce, in tandem with a 0.39% hike in platinum spot prices to $946.42 per ounce.

The annual pace of US core inflation, which excludes food and energy prices, unexpectedly slumped to 3.2% in December 2024, from 3.3% in the previous month, according to official data released yesterday.

This boosted investor sentiment towards the prospects of monetary easing by the Fed, after policymakers' recent forecasts indicated that the pace of interest rate cuts may slow in 2025.

The yellow metal’s rebound today was buoyed by the stability of the dollar index, which gauges the greenback value against a basket of major currencies, at 109 points.