Gold prices rose on Thursday as the dollar drifted down from one-month highs hit in the previous session on upbeat US economic data that boosted the prospects of an interest rate hike by the Federal Reserve next month. US retail sales rose more than expected in January and consumer prices recorded their biggest gain in nearly four years.
Spot gold had ticked up 0.2 percent, to $1,235.01 per ounce at 0529 GMT, while US gold futures were up 0.3 percent, to $1,236.2.
"Gold is approaching a turning point and the upward trend in prices could end in the near future," said Jiang Shu, chief analyst at Shandong Gold Group.
"Perhaps the market is currently underestimating the prospects of an interest rate hike by the US Federal Reserve in March, given the strong economic data. The impact (on gold prices) would probably show in the medium term."
Spot gold may retest resistance at $1,249 per ounce, according to Reuters technical analyst Wang Tao.
Comments
Comments are closed.