Gold prices rise in global markets

Gold prices rose more than 2 percent in global markets as expectations of a Federal Reserve interest rate cut strengthened after the release of weak inflation data. This information was revealed in a Reuters report assessing the global market situation on Friday (February 13).

Spot gold prices rose 2.1 percent to $5,022.06 an ounce at 1:30 p.m. New York time on Friday. Gold prices rose about 1.2 percent for the week. It fell about 3 percent the previous day, which was the lowest in about a week. US gold futures for April delivery also rose about 2 percent to $5,046.30 an ounce.

Market analysts say that investors are relieved after the January consumer price index (CPI) came in lower than expected. Independent metals trader Tai Wong said that the soft CPI has alleviated concerns that arose after the strong employment report. As a result, gold and silver prices are showing a ‘relief rally’.

According to the US Labor Department, the consumer price index rose 0.2 percent in January, while economists had predicted a 0.3 percent increase. There was also a 0.3 percent increase in December.

Data collection agency LSEG said that the market is expecting a total of 63 basis points of interest rate cuts this year, the first of which could happen in July. Generally, when interest rates are low, the demand for gold as an interest-free asset increases.

The report said that the price of silver also rose 3.4 percent to $77.70 per ounce. Although it fell 11 percent in the previous session. However, the price of silver is on track to decline slightly by 0.3 percent on a weekly basis.

Meanwhile, the price of platinum rose 3.8 percent to $2,75.93 and the price of palladium rose 3.6 percent to $1,674.50. However, both these metals are on a weekly basis.