• Gold prices rose further on Thursday, supported by a weaker dollar and as investors bought the yellow metal as a hedge against inflation after a faster-than-expected rise in U.S. consumer prices last month.
Spot gold was up 0.3 percent at $1,354.55 an ounce, as of 0407 GMT and headed for a fourth straight session of gains.
It hit its highest since Jan. 26 at $1,355.50 on Wednesday, and has gained nearly 4 percent since it dropped to a one-month low last week.
U.S. gold futures were down 0.1 percent at $1,357.2 per ounce on Thursday.
• “Higher U.S. inflation combined with the US dollar exhibiting zero correlation to higher interest rates amidst burdening duel deficits (trade and budget) should play out favourably for gold markets,” said Stephen Innes, head of trading APAC at OANDA said.
• The dollar index against a basket of currencies was down 0.3 percent at 88.898, after earlier hitting a nearly two-week low of 88.840.
• The U.S. Labor Department said its Consumer Price Index increased 0.5 percent in January as households paid more for gasoline, rental accommodation and healthcare, raising pressure on new Federal Reserve chief Jerome Powell to prevent a possible overheating of the economy.
• “Gold’s technicals have improved dramatically in light of Wednesday’s surge and could draw further fund buying,” said INTL FCStone analyst Edward Meir.
Spot gold is expected to break a resistance at $1,357 per ounce and rise to the next resistance at $1,372, driven by a wave C, according to Reuters technical analyst Wang Tao.
• Among other precious metals, silver was up 0.2 percent at $16.91 an ounce after earlier hitting a more than one-week high of $16.94.
• Palladium was 0.7 percent higher at $1,007.75, after earlier hitting a one-week top of $1,009.30.
• Platinum was up 0.2 percent at $998.74, after earlier hitting $1,002.40, its highest in nearly two weeks.
Reference: Reuters
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