Gold prices are actively rising on Monday thanks to a weaker U.S. dollar and may end trading above $1900 an ounce for the first time since last April.
Quotes for February gold contracts on the New York Mercantile Exchange (NYMEX) rose 0.9% to $1915.7 per troy ounce by 6:30 p.m. Ksk.
Silver for March delivery rose 1% to $24.25 an ounce.
The ICE-calculated index showing the U.S. dollar’s performance against six major world currencies rose slightly Friday, but the day before the indicator fell 1 percent after data showed the December inflation rate in the U.S. slowed to 6.5 percent from 7.1 percent in November.
“The inflation data confirmed that inflation is still declining, though still well above the 2% target,” wrote Kinesis Money market analyst Rupert Rawling. – The U.S. central bank will probably still raise rates at its meeting later this month, but the hike is likely to be only 25 basis points.”
However, he warned that there are concerns that gold has risen too much and may soon need a correction, so “investors should be cautious in trying to jump on that departing gold wagon.”
