WASHINGTON (dpa-AFX) - Gold prices climbed higher on Wednesday, lifted by a weak dollar, and on safe-haven appeal amid geopolitical tensions.
Despite data showing a slightly higher than expected consumer inflation reading, there are still hopes the Federal Reserve will cut interest rates in June.
CME's FedWatch Tool says there is a 58.4% chance of a 25 basis-point rate cut by June.
The dollar index dropped to 102.67, losing about 0.28%.
Gold futures for April ended higher by $14.70 at $2,180.80 an ounce.
Silver futures for May ended up by $0.762 at $25.156 an ounce, while Copper futures for May settled at $4.0600 per pound, gaining $0.1280 in the session.
Data released by the Labor Department on Tuesday showed the U.S. consumer price index climbed by 0.4% in February after rising by 0.3% in January.
Excluding food and energy prices, core consumer prices also rose by 0.4% in February, matching the increase seen in January. Economists had expected core prices to rise by 0.3%.
The report also said the annual rate of consumer price growth ticked up to 3.2% in February from 3.1% in January.
Meanwhile, the annual rate of core consumer price growth slowed to 3.8% in February from 3.9% in January. Economists had expected the pace of growth to decelerate to 3.7%.
Markets now eagerly await U.S. producer price inflation and retail sales figures this week to gauge the Federal Reserve's potential path for interest rate cuts.
The Federal Open Market Committee (FOMC) meeting on March 19 and 20 will also be watched closely for signals of possible rate cut timings.
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