* Focus on U.S. CPI data due on Wednesday
* Silver jumps after an over 5% drop last week
* Platinum off 3-week lows after 7% drop last week
Sept 11 (Reuters) – Gold rose on Monday, heading for its
best session in nearly two weeks as the dollar retreated before
this week’s key U.S. inflation reading that could influence the
Federal Reserve’s interest rate decision later this month.
Spot gold climbed 0.4% to $1,924.60 per ounce by 1002
GMT, while U.S. gold futures rose 0.3% to $1,949.20.
A weaker dollar contributed to the gains, said Bank of China
International analyst Xiao Fu, adding “the worries about a
German recession and European slowdown certainly will have some
safe-haven supportive factor as well.”
The euro zone economy this year will grow slower than
previously expected, the European Commission forecast as the
biggest economy, Germany, slips into recession.
The dollar index fell 0.4% ahead of U.S. inflation
data due on Wednesday, making greenback-priced gold cheaper for
overseas buyers.
That data could make traders revise their bets on whether
the Fed has further to go in raising rates, with the CME
FedWatch tool currently showing a 42% chance of a hike before
2024.
“The medium-term prospects for gold if the U.S. economy does
manage to avoid a recession look more challenging,” Kinesis
Money market analyst Rupert Rowling said in a note.
Ahead of Fed’s Sept. 19-20 meeting this month, Fed
policymakers have been clear that they are not itching to raise
rates, but few among them are ready to declare victory either.
Silver jumped 1% to $23.14 per ounce, its first rise
since Aug. 29.
“China’s demand (for silver) seems to be picking up and with
the country accounting for about half of global offtake, any
improvement here could lend an element of support,” Edward Meir,
an analyst who provides research for brokerage firm Marex, wrote
in a monthly note.
Platinum added 0.9% to $900.43 after logging its
biggest weekly decline since November 2021 last week, and
palladium gained 0.7% to $1,206.16.
(Reporting by Swati Verma in Bengaluru; Editing by Subhranshu
Sahu, Janane Venkatraman and Shinjini Ganguli)
