World gold price increased for 3 consecutive sessions

 World gold price increased for 3 consecutive sessions

A weak dollar and falling US bond yields sometimes pulled gold to $1,836 an ounce yesterday.

Closing the session on February 9, each ounce of world gold for immediate delivery increased by 7.6 USD to 1,833 USD per ounce. During the session, gold price at one point touched $1,836. This morning, the price is still fluctuating around the $1,834 mark.

Markets rallied on a weaker dollar and lower US Treasury yields. However, the precious metal is still stuck in a narrow range, as investors are hesitant to bet big on the US inflation report.

World gold price has increased for 3 consecutive sessions.

World gold price has increased for 3 consecutive sessions.

"The dollar fell slightly, which seems to have supported gold. But overall the market is quite quiet to wait for the inflation report on February 10," said Daniel Pavillonis, senior market strategist at RJO Futures. .

Yields on 10-year US government bonds yesterday also left the 2-year peak. The market now turns its attention to the January US consumer price index, due out today. This report will help investors better forecast the trajectory of the Fed's interest rate hike.

The Fed previously signaled that it would raise interest rates from next month to deal with inflation. Yesterday, Atlanta Fed President Raphael Bostic said that the US is coming to a period of decelerating inflation. However, he is still leaning towards the possibility of raising interest this year.

Fawad Razaqzada, an analyst at ThinkMarkets, believes that global inflation is making gold an attractive investment tool. However, the precious metal is stuck in the resistance level of 1,830 – 1,850 USD.