Gold price shows strength despite rising US inflation rate

Gold price shows strength despite rising US inflation rate

Gold prices experienced a temporary downturn after US inflation came in slightly higher than expected at 3.5 percent p.a. in March. This was largely due to falling interest rate expectations. CME Group's FedWatch tool now shows just a 19 percent chance of lower interest rates in June, down from 66 percent a week ago. Despite temporary pressure on gold markets, central bank interest in the precious metal remained high as it continues to be viewed as a “safe haven” due to geopolitical risks. Market players will now be eagerly awaiting the European Central Bank's interest rate decision and the subsequent press conference in the afternoon.

Gold prices were higher on Thursday morning, with the most actively traded gold futures (June) rising by $12.70 to $2,361.10 per troy ounce by 7:30 a.m. (CET). On crude oil, updates are awaited from OPEC, IMF and IEA, while geopolitical tensions over the targeted killing of Hamas officials in Gaza further complicate matters. The upcoming monthly reports could provide impulses for the oil price in various directions. Despite the negative information from the “interest rate front”, the current developments on the energy market remain in focus.

The oil price trend on Thursday morning shows a slight upward movement, with the next due WTI future rising by 0.13 to $86.34 and its Brent counterpart rising by 0.15 to $90.63. Overall, the situation on the commodity markets remains influenced by various factors, including geopolitical events, inflation data and interest rate expectations, which could significantly influence price developments in the coming days.