Gold prices up amid expectations of US inflation slowdown

Gold prices advanced today, Sept. 12, as the US dollar weakened as investors evaluate soaring US inflation expectations and their impact on the upcoming Federal Reserve decision.

Gold futures for December delivery jumped 0.45% to $1,736.10 an ounce at 11:40 am Makkah time. Similarly, spot prices gained 0.4% to $1,724.19 per ounce.

In addition, silver futures for December delivery increased 1.67% to $19.08 per ounce. The spot price for platinum also rose 1.23% to $891.86 an ounce, while the spot price of palladium settled at $2,173.08 per ounce.

Meanwhile, the main dollar index, which measures the performance of the US currency against a basket of six currencies, shed 0.93% to 107.96 points.

Market focus is on the release of data of August’s US Consumer Price Index (CPI) tomorrow, Sept. 13, which is set to plunge to 8.1% from 8.5% in July.

On Sept. 9, Fed officials wrapped up their public comment period ahead of the central bank's monetary policy meeting next week. Calls are amplifying for another big interest rate hike in order to tame inflation and push it toward the 2% target.