Gold Inches Higher As ECB Signals End To Rate Hikes

Published: 9/15/2023 6:05 AM ET

Gold prices inched higher on Friday, as the dollar retreated after refreshing a six-month high on strong U.S. data released overnight.

Spot gold rose 0.4 percent to $1,918.38 per ounce, while U.S. gold futures were up 0.4 percent at $1,939.90.

The dollar index weakened on improved risk aversion on the back of improved China data and amid expectations that interest rates in the U.S. and Europe may have peaked.

Robust U.S. economic data failed to budge expectations that the Federal Reserve will leave its key interest rate unchanged next week.

On Thursday, the European Central Bank (ECB) piled on a 10th straight interest-rate increase but signaled a potential end to its rate-hike campaign aimed at curbing inflation.

Elsewhere, in the U.K., some recent speeches from MPC members have added fuel to the speculation that the Bank of England is starting to consider pausing interest rate hikes.

Earlier today, China reported industrial production and retail sales figures for August that topped forecasts.

Industrial production posted an annual increase of 4.5 percent, while analysts expected output to climb moderately by 3.9 percent after a 3.7 percent increase in July.

Likewise, growth in retail sales improved to 4.6 percent in August from 2.5 percent in the previous month. This was also better than economists’ forecast of 3.0 percent.

Another batch of U.S. economic data including reports on import and export prices, industrial production and consumer sentiment may sway markets in the New York session.