Gold prices dip but hold above $1,900/ounce

Gold ended in the red today, March 14, after the release of US inflation data, and as expectations grew that the Federal Reserve would dial down its interest rate hikes amid the collapse of two big US banks.

Today's data indicated that US annual inflation slowed to 6% in February, compared to 6.4% in the previous month.

Traders of futures tied to the Fed’s rate policy cut their forecast for the central bank deciding on fixing US interest rates at the forthcoming March 21-22 meeting. They are now pricing in a more than 70% chance of a quarter-point rise in the Fed's benchmark rate.

On the other hand, fears sparked by the Silicon Valley Bank (SVB) collapse subsided, despite the downgrade of Moody's outlook for the US banking sector.

In terms of trading, gold for April delivery plunged by 0.3%, or $5.60, to close at $1,910.90 an ounce.

Meanwhile, the US dollar index, which gauges the greenback's strength against a basket of six currencies, held ground at 103.60 points at 8:50 pm Makkah time.