Gold surges ahead of US inflation data, Fed policy decision

Gold prices advanced today, June 12, with investors awaiting the release of US consumer price inflation (CPI) data and the Federal Reserve's interest rate decision later in the day, with expectations suggesting a prolonged monetary tightening cycle.

Bullion for August delivery added 0.20% to $2,331.30 per ounce at 10:09 am Makkah time, while spot prices plunged by 0.14% to $2,313.79 per ounce.

Elsewhere, silver futures for July delivery climbed by 0.78% to $29.46 an ounce, as platinum spot prices held ground at $958.09 per ounce.

Analysts project the Fed to hold interest rates within the 5.25-5.50% range during its policy meeting that ends today.

Investors are also awaiting the release of policymakers’ outlook report about the future path of borrowing costs, with previous estimates indicating three rate cuts this year.

The May reading for the US CPI is also scheduled to be released today before the end of the Fed policy meeting, amid expectations that the annual rate will stabilize at 3.4% growth, in line with the April reading.