Gold Prices Plummet over 1% Amid Dollar Firming, Inflation Data Focus
Gold prices fell over 1% to their lowest level in more than a week on Thursday, as the U.S. dollar firmed and investors awaited key inflation data that could offer clues on the Federal Reserve's monetary policy. Spot gold hit $2,880.79 an ounce, its lowest since February 17, as investors sought safe-haven assets amid global economic uncertainty. The dollar index rose 0.2%, making greenback-priced bullion more expensive for other currency holders.
- This volatility in gold prices highlights the complex interplay between central bank policies, geopolitical risks, and market sentiment, underscoring the need for careful analysis of inflation data to gauge future monetary policy moves.
- How will the Fed's response to this inflation data affect the trajectory of interest rates and the metal's price in the coming months?