Gold prices end in green as US inflation forecasts weaken

Gold prices consolidated their gains at close today, Jan. 30, buoyed by US data that showed weakening inflation projections, on the heels of the start of the Federal Reserve’s policy meeting.

Bullion for April delivery climbed by 0.30%, or $6.30, to finish at $2,050.90 per ounce, after touching $2,068 an ounce earlier in the session.

Meanwhile, the US dollar index, which gauges the greenback's strength against a basket of six currencies, decreased 0.10% to 103.52 points at 09:16 pm Makkah time.

According to the US Conference Board, the average 12-month inflation forecast fell to 5.2%, the lowest level since March 2020 (4.5%).

Traders are favoring the Federal Reserve to cut interest rates by 25 basis points (bps) during the policy meeting scheduled to be held in May, pricing in a 54.8% chance, compared to 11.3% a month ago, according to the CME FedWatch Tool.