Gold gains amid strong dollar and US inflation outlook
Gold prices increased during today's trading on Tuesday, October 13, despite the rise in the dollar and the anticipation of the U.S. inflation data, which will determine the path of interest rate hikes at the upcoming Federal Reserve meeting at the end of the month. The spot gold price rose by 0.6% to approximately $4,197, while the price of gold futures also increased by 0.6% to around $4,217. Although the dollar remained near its highest levels in 18 months, inflation expectations and the upcoming economic data are causing investors to watch the prospects of interest rate hikes, which the market currently prices in at about 21% for this month, with a strong likelihood of increase in December. Gold continues to be influenced by expectations of U.S. interest rate hikes, as demand for the yellow metal tends to decrease when interest rates are high.
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