Gold crosses $1,800 barrier amid weak U.S. inflation data
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Gold jumped above the $1,800 level to record a one-week high on Tuesday, while the dollar softened following a weaker-than-expected U.S. inflation data, leading to uncertainty over the U.S. Federal Reserve’s outline to taper monetary stimulus.
Spot gold gained 0.6 percent to $1,803.35 per ounce, while U.S. gold futures also rose 0.6 percent to $1,805.60 per ounce.
According to market reports, the U.S. core Consumer Price Index (CPI) rose 0.1 percent in August, its lowest gain since February, falling below expectations of 0.3 percent, which weighed on the U.S. dollar.
Ed Moya, senior market analyst at brokerage OANDA, described the U.S data as good news for bullion, adding that it makes a September taper announcement from the Fed less likely.
Elsewhere, it was a mixed market for other metals as silver gained 0.5 percent to $23.83 per ounce, palladium lost 4.6 percent at $1,990.19, its lowest since July 2020, while platinum shed 1.8 percent at $943.86.