Gold rallies ahead of US inflation data

Gold prices rallied today, Jan. 9, as investors awaited the release of the US Consumer Price Inflation reading on Jan. 11, which may affect the outlook for monetary policy.

Bullion for February delivery inched up 0.43% to $2,042.30 per ounce at 10:41 am Makkah time, with spot prices also up 0.38% to $2,035.79 an ounce.

Similarly, platinum spot prices gained 0.37% to $951.45 per ounce, while silver futures for March delivery remained flat at $23.35 an ounce.

In a speech on Jan. 8, Atlanta Federal Reserve President Raphael Bostic said the US central bank is expected to cut interest rates twice in 2024 — in the second half of the year — as inflation slowed more than expected, on track to reach the Fed’s 2% target.

UBS analysts explained, in a note, that they currently have greater conviction about the US economy achieving a soft landing. They also believe that the Fed will cut interest rates four times this year, possibly starting next May.