Gold prices dip to 5-week low

Gold prices slid to their lowest settlement in five weeks today, Feb. 13, as investors positioned themselves ahead of the US inflation print that could influence the Federal Reserve’s policy path.

The yellow metal was pressured by the continued rise in US Treasury yields, as the yield on the two-year Treasury note advanced to 4.54%.

Markets are bracing for the release of January’s US inflation data, which is due tomorrow, Feb. 14. Forecasts suggest a 6.2% hike in the Consumer Price Index (CPI) during the month, against 6.5% in December 2022.

In terms of trading, gold for April delivery shed 0.6%, or $11, to $1,863.50 an ounce, marking the lowest close since Jan. 5.

Likewise, the US dollar index, which gauges the greenback's strength against a basket of six currencies, contracted by 0.3% to 103.267 points at 9:54 pm Makkah time.