Gold prices rise amid US inflation data and dollar weakening

Spot gold increased by 0.3 percent to 4 thousand 412.84 dollars. US gold futures contracts decreased by 0.1 percent to $4,457.10 in December delivery.

Gold Type Gold Price Gram gold 6.875 TL Quarter gold 11.207 TL Republic gold 44.686 TL Ounce gold 4.407 Dollars Half gold 22.415 TL Full gold 44.688 TL Gremse gold 112.062 TL

In the gold market, all eyes are on US inflation data, which may give new signals regarding the interest rate steps that the US Federal Reserve (Fed) will take in the coming period.

MARKETS ARE WAITING FOR US INFLATION DATA

While the US Producer Price Index (PPI) data is expected to be announced at 15.30 GMT, consumer inflation data will be published on Friday.

Most economists predict that the Fed will not change interest rates at its meeting on September 15-16 and will not reduce or increase interest rates for the remainder of the year.

This expectation differs from the interest rate increase scenarios that have become stronger in the markets recently.

According to CME FedWatch Tool data, markets are pricing the possibility of the Fed to raise interest rates this month at 60 percent. Rising interest rates are among the factors that reduce the attractiveness of gold, which does not yield interest, for investors.

'THE WEAKING OF THE DOLLAR SUPPORTS GOLD'

Marex analyst Edward Meir stated that geopolitical developments in the Persian Gulf are of secondary importance to gold prices at this stage.

Meir pointed out that gold found support mainly from the weakening of the dollar and stated that the dollar did not show a significant gain in value despite the increase in US interest rates.

USA'S PUBLIC DEBT EXCEEDED 40 TRILLION DOLLARS

ANZ Senior Commodity Strategist Daniel Hynes said that concerns about the financial outlook of the USA are one of the important factors supporting gold prices.

Hynes stated that fiscal pressures in the United States continue to weaken confidence in government debt and the long-term value of the dollar used to finance this debt.

The fact that the total public debt of the USA exceeded 40 trillion dollars for the first time last month has brought the risks regarding the country's financial outlook back to the agenda.

A DIFFERENT COURSE IN SILVER AND PLATINUM

A mixed outlook was observed in other precious metals.

While spot silver increased by 0.2 percent to $67.42, platinum decreased by 0.6 percent to $1,885.02.

Palladium was traded at $ 1,355.50 with an increase of 0.2 percent.