A gold bar is presented at the German Central Bank in Frankfurt am Main on August 23, 2017. (AFP/ DPA /Arne Dedert)
London: Gold prices rose yesterday as the dollar retreated after data showed subdued price pressures in the United States, while rising security concerns created by tensions on the Korean peninsula supported sentiment.
The dollar slipped on news that annual inflation rose at its slowest pace since late 2015, which diminished expectations of a Fed rate rise in December. A falling US currency — already near its lowest since 2015 — makes dollar-denominated gold cheaper for holders of other currencies, which could boost demand.
Spot gold was up 0.2 percent at $1,311.77 an ounce at 1344 GMT, on track for a rise around 3 percent this month. US gold futures gained 0.2 percent to $1,316.80. Gold prices are up around 13 percent so far this year.
Oxford Economics expects the gold price to average $1,265 in the fourth quarter and $1,270 next year.
This week, the Fed’s preferred inflation measure, the personal consumption expenditures (PCE) price index excluding food and energy, showed a 0.9 percent rise in the second quarter, its slowest in more than two years.
Elsewhere, silver rose 0.2 percent to $17.41 an ounce, platinum lost 0.2 percent to $984.74 and palladium added 0.7 percent to $933.6.
