Gold is poised for its best weekly close since April as investors strengthen the Fed’s pricing for peak interest rates after key US data pointed to a slowdown in inflation.
Spot gold is trading at $1,956 an ounce. Gram gold, calculated over ounce gold and interbank rates, is around 1.643 TL.
Spot gold, your expectations this week under It rose almost 2 percent, supported by the weakening dollar and falling bond yields, as some market players warned of the possibility of disinflation following the incoming US CPI data.
The precious metal’s recent rally marks a turning point after losing momentum in mid-June with successive reports suggesting inflationary pressures remain high.
However, as core US inflation remains above the Fed’s 2 percent target, swap investors have almost completely priced in a rate hike by the Federal Reserve at its July meeting.