Gold prices stabilized positively amid quiet trading and the stability of the US dollar, in light of an official holiday on Wall Street.
Stock and bond markets were closed in the United States today, Monday, due to the Presidents’ Day holiday, and will return to their usual activity tomorrow, Tuesday.
Inflation is still a concern
The markets are evaluating inflation data released last week in the United States. Recent data revealed that the producer price index in the United States rose by 0.7% in January, while analysts expected it to rise by 0.4%.
Excluding some volatile commodities, the core PPI rose 0.5% last month, beating expectations for a 0.3% rise.
One measure of inflation is the producer price index, along with the consumer price index, which came in at 6.4% y/y, above expectations of 6.2%.
These data mean that the Fed will find a strong justification to move forward in its next meetings in raising interest rates and tightening monetary policy additionally to control inflation.
For his part, Federal Reserve member James Bullard said that he does not rule out raising interest rates by 50 basis points at the next March meeting.
The dollar index settled by 20:33 GMT at 103.8 points, and recorded the highest level at 104.09 points and the lowest level at 103.7 points.
It is known that the strength of the dollar in general puts pressure on most commodities and industrial and precious metals, as they are valued in the global markets in the American currency.
In terms of trading, spot gold contracts settled positively at 20:34 GMT, at the level of $1850.4 an ounce.