Gold prices rise at settlement at highest level in a month

Gold bars

Gold prices ended in the green today, Jan. 15, thanks to the decline of the US dollar and Treasury bond yields, after recent data showed the US core inflation rate slowed during December 2024, recording a lower-than-anticipated reading.

February gold futures added 1.3%, or $35.5, to finish at $2,717.8 per ounce, the highest since the end of trading on Dec. 11, 2024 ($2,756.7).

This came as the US dollar index, which gauges the greenback's strength against a basket of six currencies, dropped 0.15% to 109.1 points at 11:07 pm Makkah time, after slipping to 108.60 points earlier in the session.

The US Bureau of Labor Statistics data showed that the annual growth rate of the core consumer price index, which excludes volatile food and energy prices, came in at 3.2% for December 2024, below forecasts for an unchanged 3.3%.

Markets are currently eyeing the possibility of the Federal Reserve cutting interest rates by 40 basis points (bps) by year-end, compared to about 31 bps prior to the release of the latest inflation data, Reuters reported.