Gold prices rise ahead of US inflation data

Gold bars

Gold prices advanced today, Jan. 15, thanks to the decline of the US dollar as investors awaited the release of the December reading for US consumer price inflation, after official data yesterday showed a less-than-anticipated monthly hike in producer prices.

February gold grew 0.73% or $19.7 to $2,702 an ounce at 11:16 am Makkah time, with spot prices also soaring 0.22% to $2,682.99 per ounce.

March silver futures, likewise, rose 0.97% to $30.64 an ounce, while platinum spot prices slipped 0.43% to $938.15 per ounce.

This came as the US dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.21% to 109 points, supporting the reduction in the cost of buying gold in other currencies.

Official data released yesterday showed that the annual inflation rate for US producer prices accelerated to 3.3% in December 2024, from 3% in the month before. However, it increased by only 0.2% on a monthly basis, against expectations of a 0.4% hike for the second month in a row.

Such data helped calm fears that the Federal Reserve would slow the pace of interest rate cuts during the current year on the continued momentum of the labor market and economic activity.

Investors are closely eyeing the release of consumer price inflation data due later today for more cues about the future of monetary easing. This is particularly since forecasts suggest an annualized uptick to 2.9% in December 2024, from 2.7% a month earlier.