Gold Prices Rise In New York As US Inflation Data Is Higher Than Estimated

I - Gold futures in the COMEX New York Mercantile Exchange division settled higher at the end of trading.

JAKARTA - The price of gold futures in the COMEX New York Mercantile Exchange went up on Friday (Saturday morning WIB) because the United States (US) inflation data was higher than expected.

The most active gold contract for April delivery fell 9.20 dollars, or 0.46 percent, to close at 2,024.10 dollars an ounce.

The US Department of Manpower reported on Friday 16 February that the US producer price index, a price measure received by domestic goods and services producers, rose 0.3 percent in January or experienced its biggest increase since August.

The inflationary data is higher than expected to increase market expectations against the Federal Reserve, which was unlikely to lower interest rates before June, weakening the US dollar and supporting rising gold prices.

At the National Association for Business Economics event on Friday 16 February, Deputy Chair of Federal Reserve Supervision Michael Barr said the Federal Reserve needed to look at more data showing inflation returning to 2 percent before starting to lower interest rates. Barr supports Jerome Powell's careful approach to lower interest rates.

Other economic data released on Friday varies. Starting from the Consumer Sentiment Index published by The University of Michigan rose to 79.6 in February and 79 in January. The small increase followed a sharp increase over the previous two months which was the largest in more than 30 years.

In addition, further economic data is that reports from the US Department of Commerce regarding the construction of new US houses fell 14.8 percent in January as house builders reduced new projects. Then, housing development fell to an annual level of 1.33 million from 1.56 million in December.

Regarding silver precious metals, March delivery rose 52.40 cents, or 2.28 percent, to close at 23,475 dollars per ounce. The price of platinum for April delivery rose 8.30 dollars, or 0.92 percent, closed to 913.50 dollars per ounce.