Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Gold Prices Hit Two-Week Highs as Data Supports Fed Pause

Published 02/15/2019, 10:50 AM
XAU/USD
-
XAG/USD
-
GC
-
HG
-
SI
-
PA
-
PL
-

Investing.com - Gold prices moved higher on Friday as a string of weak economic data and subdued inflation supported the Federal Reserve’s current stance of being “patient” with future rate hikes, lowering the opportunity cost of holding non-yielding bullion.

At 10:47 AM ET (15:47 GMT), gold futures for April delivery on the Comex division of the New York Mercantile Exchange gained $4.35, or 0.33%, to $1,318.25 a troy ounce. The intraday high of $1,322.95 was its best level since Feb. 4.

Coming on the back of the biggest decline in U.S. retail sales in the last nine years, a string of weak data out Friday reinforced the idea that the economy lacks the firepower necessary to force the Federal Reserve to boost interest rates.

Overnight, Chinese inflation data increased concern over deflationary pressures in the world’s second largest economy. China’s consumer price inflation unexpectedly slowed, while factory-gate inflation hit its weakest level since September 2016.

Stateside, U.S. import prices fell for a third-straight month in January, leading to the largest annual drop in nearly 2-1/2 years. That only added to earlier evidence this week that the consumer price index was holding steady, downplaying the need for tighter Fed policy so inflation doesn’t get out of hand.

The University of Michigan’s preliminary February readings of consumer sentiment released on Friday showed a larger-than-expected improvement following the reopening of the government after a shutdown that had dragged confidence to a two-year low.

As part of the data collected, the surveyor’s chief economist Richard Curtin noted that consumers’ long-term inflation expectations fell to the lowest level recorded in the past half century.

“The data suggest that the Fed will find it even harder to justify another rate hike given the record low inflation expectations,” Curtin added.

In other metals trading, silver futures rose 0.32% at $15.578 a troy ounce by 10:48 AM ET (15:48 GMT).

Palladium futures gained 1.56% to $1,407.50 an ounce, while sister metal platinum traded up 0.42% at $792.50.

In base metals, copper advanced 0.32% to $2.783 a pound.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.