- US CPI due Wednesday
- Dollar down 0.1%
- Platinum Regains Investor Attention – ANZ
May 8 (Reuters) – Gold prices rose on Monday as the dollar weakened as investors waited this week for key US inflation data that could influence the Federal Reserve’s policy stance.
Spot gold rose 0.2% to $2,020.80 an ounce (06:34 GMT). US gold futures were also up 0.2% to $2,029.30.
The dollar index fell 0.1%, making bullion more attractive to overseas buyers.
US Consumer Price Index (CPI) data is due on Wednesday.
Any sign of subdued inflation would weigh on the greenback due to the Fed’s lower rate expectations, which could lead to a bullish trend in gold, said Tim Waterer, chief market analyst at KCM Trade.
Traders are also keeping an eye on developments surrounding the US banking sector and the US debt ceiling.
US Treasury Secretary Janet Yellen on Sunday issued a strong warning that a failure by Congress to act on the debt ceiling could trigger a “constitutional crisis”.
Gold would be among the “key beneficiaries” if there are further signs of weakness in the US economy and prices could rally to $2,100 sooner rather than later, Waterer said.
Economic uncertainty and lower interest rates are attracting demand for zero-yield bullion.
“We are bullish on precious metals through May…We are looking for a trading range of $1,954-$2,080 per ounce for gold (in May)” Edward Meir, metals analyst at Marex, said in a statement.
On the physical front, China held 66.76 million troy ounces of gold at the end of April, up from 66.50 million ounces at the end of March.
Spot silver rose 0.1% to $25.67 an ounce.
Platinum was up 0.5% to $1,064.03 and palladium was up 1.5% to $1,513.11.
“Platinum is regaining investor attention as fundamentals improve,” ANZ wrote in a note.
“South African mining challenges are weighing on the supply recovery this year as demand is supported by gold and replaced by palladium.”
Reporting by Ashitha Shivaprasad in Bengaluru; Edited by Sherry Jacob Phillips
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