CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 87.41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Scan to Download iOS&Android APP

PRECIOUS-Gold rises above $1,900/oz after U.S. inflation data cements Fed slowdown bets

By Reuters_News

15:00, 12 January 2023

Share this article

Subscribe to Weekly Highlights

The major market events for the week ahead right in your inbox. Subscribe
A file photo shows an employee pouring liquid gold into a mould for the production of an ingot during the refining process at AGR (African Gold Refinery) in Entebbe, Uganda, October 4, 2018.
A file photo shows an employee pouring liquid gold into a mould for the production of an ingot during the refining process at AGR (African Gold Refinery) in Entebbe, Uganda, October 4, 2018.

CPI declines 0.1% in Dec, meets expectations

Dollar drops to over seven-month low

Silver up more than 3%

Recasts, adds comments, updates prices

By Seher Dareen

- Gold prices pared gains after earlier jumping more than 1% to above the key $1,900 per ounce pivot on Thursday after data showing signs of cooling inflation in the United States boosted bets for slower rate-hikes from the Federal Reserve ahead.

U.S consumer prices unexpectedly fell for the first time in more than 2-1/2 years in December amid declining prices for gasoline and other goods, suggesting that inflation was now on a sustained downward trend.

Spot gold rose 0.5% to $1,886.19 per ounce by 9:47 a.m. ET (1447 GMT), earlier hitting $1,901.4, its highest since May 2022.

U.S. gold futures gained 0.6% to $1,889.50.

"The expectations clearly look like at this point, we're going to see two more 25 basis point rate hikes at the next two Fed meetings," said David Meger, director of metals trading at High Ridge Futures.

"We continue to focus on the idea that the Fed is getting that much closer to the end of their interest rate hike cycle ... the underlying environment for gold remains strong."

XRP/USD

0.40 Price
+2.360% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 0.00323

Natural Gas

2.77 Price
+2.900% 1D Chg, %
Long position overnight fee -0.0735%
Short position overnight fee 0.0483%
Overnight fee time 22:00 (UTC)
Spread 0.005

BTC/USD

23,130.35 Price
+1.540% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 60.00

US100

12,050.50 Price
+0.970% 1D Chg, %
Long position overnight fee -0.0179%
Short position overnight fee 0.0070%
Overnight fee time 22:00 (UTC)
Spread 1.8

Money market participants see a 89.6% chance the Fed will raise the benchmark rate by 25 basis points in February.

Following the CPI report, the dollar dropped 0.5% to its lowest since early June, making gold more attractive for other currency holders. USD/

Fed Bank of Philadelphia leader Patrick Harker said the end stage for the central bank's rate rise campaign is in sight.

While a separate report from the Labour Department showed initial claims for state unemployment benefits fell last week, signs of inflation decreasing took precedence.

Elsewhere, silver rose 1.4% to $23.74 per ounce, rising 3% earlier.

Platinum dropped 1.1% to $1,059.04 while palladium was down 1.2% at $1,752.18.


Reporting by Seher Dareen in Bengaluru; editing by David Evans

Rate this article

Share this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Latest Forex news

Still looking for a broker you can trust?

Join the 480.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading