Gold is rising as bets increase on halting interest rate hikes

Gold prices rose for the third consecutive session on Thursday, as less-than-expected US inflation data reinforced bets that the Federal Reserve (the US central bank) may raise interest rates again next month and then halt the increases.

By 03:32 GMT, spot gold rose 0.1% to $2016.99 an ounce.

US gold futures rose 0.3% to $2,030.70.

Gold prices rose more than 1% on Wednesday, after data showed that the consumer price index in the United States rose 0.1% last month, compared to expectations for a 0.2% increase, after rising 0.4% in February.

“Expectations that the Fed’s hike cycle may be nearing its end is supported by recent US consumer price index data, while lower Treasury yields and a weaker dollar support gold prices,” said Yip John Rong, market analyst at IG.

Gold is a hedge against inflation, but high interest rates reduce the attractiveness of the yellow metal, which does not yield a return.

Yep added that recession fears “allow gold prices to build on their safe-haven status.”

As for other precious metals, silver increased in spot transactions by 0.1% to $25.50 an ounce, platinum settled at $1015.06, and palladium rose 0.3% to $1464.16.

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