Gold prices climb on weaker dollar and easing inflation
Gold rose to 5,179.52 dollars as a weaker dollar and lower oil prices eased inflation fears. Markets now await U.S. consumer price data due on Wednesday.
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Gold prices rose on Tuesday as a weakening dollar and declining energy costs improved market sentiment. The shift followed comments from the United States president suggesting that the conflict in the Middle East could reach a resolution soon. Spot gold climbed 0.8% to $5,179.52 per ounce, while U.S. gold futures for April delivery advanced 1.7% to $5,188.70. The dollar index fell 0.4%, making the precious metal more affordable for international buyers.
Kelvin Wong, a senior market analyst at OANDA, noted that the potential for de-escalation has significantly altered inflation expectations.
