Gold stabilizes before the announcement of US inflation data

Gold prices moved in a narrow range today as investors refrained from making big bets ahead of the announcement of important US inflation data this week.

And by 0242 GMT, spot gold prices settled at $ 1875.68 an ounce, hovering near the highest level in eight months, which it reached on Monday.

And US gold futures rose 0.2 percent to $ 1879.30 an ounce.

Gold is considered a hedge against inflation, but it is very sensitive to raising interest rates, which increase the opportunity cost of holding the precious metal, which does not pay interest.

Michelle Baumann, an official at the Federal Reserve (US Central Bank), said yesterday that the central bank will have to raise interest rates again to combat increasing inflation, and this will likely lead to more fragile conditions for the labor market.

As for other precious metals, silver increased in spot transactions by 0.1 percent, to $23.63 an ounce.

Platinum fell 0.5 percent to $1,075.11 an ounce.

Palladium fell 0.4 percent to $1,774.13 an ounce.

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