KONTAN.CO.ID - NEW YORK. Gold prices rose to a more than one-week high on Wednesday as the U.S. dollar and Treasury yields weakened after cooler inflation data boosted bets that a U.S rate cut might come sooner than earlier priced in by investors. Spot gold rose 0.4% to $1,970.45 per ounce at 1224 GMT, after earlier touching its highest since Nov. 7. U.S. gold futures also gained 0.4% to $1,974.70. Market participants are now awaiting U.S. retail sales and producer price figures due at 1330 GMT. Economists polled by Reuters forecast producer prices rose 0.1% last month, compared with a 0.5% increase in September.
"Today's data release could compound the losing streak for the U.S dollar, should the figures fall below expectations. Against this background, risk is on the upside for gold," said ActivTrades senior analyst Ricardo Evangelista. Data on Tuesday showed that U.S. consumer prices were unchanged in October, with the annual rise in underlying inflation the smallest in two years. Read Also: Indonesia State Utility Plans 31.6 GW Renewable Power Capacity in 2024-2033 Following the CPI data, the dollar fell to an over two-month low and benchmark U.S. 10-year Treasury yields fell to their lowest level since Sept. 22. A weaker U.S. currency makes dollar-priced gold less expensive for holders of other currencies.
