Gold prices rise amid global inflation fears

Gold prices rose today, Sept. 6, driven by US dollar stability amid concerns about global slowdown and forecasts of accelerated global inflation on higher energy costs.

However, the precious metal faces some pressure, as central banks around the world raise interest rates to fight inflation amid expectations that the European Central Bank will hike interest rates by 75 basis points in next Thursday’s meeting.

On the other hand, the People's Bank of China recently cut the prime interest rate by 10 basis points, and the Chinese government announced new stimulus measures, in an attempt to support the economy.

As for the US data expected today, the ISM Services PMI index will likely decline to 55 points for August.

Gold futures for December delivery inched up 0.24% to $1,726.90 an ounce, and spot prices rose 0.27% to $1,714.88 an ounce at 11:18 am Makkah time.

Meanwhile, silver futures for December delivery rose 2.29% to $18.29 per ounce, and spot prices for platinum rose 0.61% to $850.94. Meanwhile, palladium prices leapt 1.40% to $2,061.62.

The dollar index, which measures the performance of the US currency against a basket of six major currencies, stabilized at 109.65 points.