Gold futures experienced a positive rally on Monday, November 13, propelled by a weakening dollar, as investors closely monitored the release of the US Consumer Price Index (CPI) to assess inflation trends and gauge potential shifts in the Federal Reserve’s (Fed) interest rate policies.
Gold futures saw an increase of $12.50, equivalent to a 0.65% rise, concluding the day at $1,950.20 per ounce. In tandem, other precious metals also saw gains:
- Silver futures rose by 7.70 cents, marking a 0.35% increase, closing at $22.358 per ounce.
- Platinum futures recorded a rise of $18.00, reflecting a 2.13% increase, concluding at $863.60 per ounce.
- Palladium futures experienced a $3.50 increase, representing a 0.35% gain, closing at $982.30 per ounce.
The decline in the dollar index against a basket of six major currencies, falling by 0.21% to 105.6405 overnight, provided additional support for gold futures to end the day on a positive note. A weakened dollar makes gold contracts priced in dollars more attractive to investors holding alternative currencies.
Investor attention is now focused on the release of the Consumer Price Index (CPI) by the US Department of Labor today, November 14. The CPI, a key measure of inflation derived from consumer spending, is expected to shed light on the broader economic landscape.
Analysts anticipate that the Headline CPI, encompassing food and energy categories, will reveal a 3.3% year-on-year increase in October, a slowdown from the 3.7% recorded in September. Additionally, the Core CPI Index (Core CPI), excluding food and energy categories, is expected to show a consistent 4.1% year-on-year increase for October, unchanged from September. These figures will play a crucial role in shaping market expectations and influencing future monetary policy decisions by the Federal Reserve.
The Spot Market is Open
Tuesday, November 14, 2023