Gold prices steady ahead of US inflation data

Gold prices steadied today, July 13, with the US dollar strengthening ahead of the release of US inflation data, which would push the Federal Reserve to continue to tighten monetary policy further, putting pressure on the precious metal.

Gold futures for August delivery settled at $1,723.10 an ounce at 10:40 am Makkah time, with spot prices reaching $ 1,725.98 per ounce.

Elsewhere, silver futures for September delivery declined 0.31% to $18.90 per ounce. The spot price of platinum also fell 0.67% to $840.19, with the spot price of palladium also down 1.27% to $2,000.47.

Meanwhile, the main dollar index, which measures the performance of the US currency against a basket of six currencies, rose 0.18% to 108.35 points.

Richmond Fed President Thomas Barkin kept his options open on how big the central bank should go when it raises interest rates later this month, following a 75-basis-point hike in June, Bloomberg reported yesterday.

The US Consumer Price Index (CPI) figures for June 2022 are due later today, with expectations of an acceleration on a monthly and annual basis during the month, recording an increase of 1.1% and 8.8%, respectively.

On the other hand, Kristalina Georgieva, Director-General of the International Monetary Fund, warned that there is a global debt crisis in the making, in light of the continued increase in interest rates from central banks to curb inflation, which increases the cost of debt service for weak countries, noting that about 30% of developing countries and emerging markets are either debt-ridden or close to it.