Matt Simpson, chief analyst at City Index, said: “The fluctuations in gold prices have calmed down after the excitement that followed the US inflation report, and it appears to be quite stable around $1960, despite the dollar trying to recover some of its losses.”
The dollar continued its gains against competing currencies after strong US economic data, making gold more expensive for buyers abroad.
Indicators of a slowdown in inflation have reinforced investors’ bets that the US Federal Reserve has finished its cycle of raising interest rates.
Lowering interest rates supports the attractiveness of the precious metal, which does not generate a return and is used as a hedge against inflation.
As for other precious metals, silver fell in spot transactions 0.4 percent to $23.36 per ounce, platinum fell 0.6 percent to $890.95, and palladium fell 0.8 percent to $1,022.93 per ounce.
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