Inflation effect on gold

Gold prices are fluctuating after two consecutive weeks of declines, influenced by the inflation data released in the US on Friday. Gold prices are fluctuating as the inflation data released in the US increases expectations that the Fed will ease its aggressive tightening cycle. The price of an ounce of spot gold is trading at $1,808, down 0.1 percent. Gold prices had reached their highest level since April 2022 earlier this month. The inflation indicator, which the Fed also closely follows in the US, accelerated in January. This rise could put pressure on policymakers to continue raising interest rates. This could be negative for gold. US Treasury Secretary Janet Yellen said in an interview on Saturday that the data released showed that 'the fight against inflation is not over yet.' While spot silver and platinum are also falling today, palladium is rising.