old ends in green on weaker US dollar

Gold bars

Gold prices closed in the green today, Jan. 14, lifted by a weaker US dollar after the latest US inflation data missed the average consensus, which could pave the way for the Federal Reserve to continue its path to ease interest rates this year.

Gold futures for February delivery increased by 0.15%, or $3.70, to finish at $2,682.30 per ounce.

This coincided with a 0.65% drop in the US dollar index, which measures the value of the greenback against a basket of six major currencies, to 109.21 points at 10:37 pm Makkah time.

US Labor Department data showed that the producer price index (PPI) slowed to 3.3% on an annual basis in December 2024, from 3.5% in the month before. This was below forecasts that indicated growth of 3.4%.

“The cooler PPI data sent the US dollar index lower and that helped the bullion market, as lower inflation means the Fed may be able to cut rates sooner,” said Jim Wyckoff, senior market analyst at Kitco Metals, in a recent note.