Gold rises on high inflation in Europe

By Xu JingUnreguser
  • World
  • Wednesday, 01 Mar 2023

CHICAGO, Feb. 28 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange rose on Tuesday on high inflation in major European countries.

The most active gold contract for April delivery rose 11.80 U.S. dollars, or 0.65 percent, to close at 1,836.70 dollars per ounce.

Industrial data show that British grocery inflation hit 17.1 percent in the four weeks to Feb. 19, the highest it's ever recorded. Measured by the European Union's harmonized standards, French inflation rose to 7.2 percent year over year in February from 7 percent in January, while Spain's consumer prices rose 5.8 percent year over year in January, after a 5.5 percent rise in December. In France, food inflation was 14.5 percent year over year.

High inflation data helped cement expectations for a 50 basis point rate hike by the European Central Bank at its March meeting, dampening gold.

U.S. economic data release on Tuesday also supported gold. The S&P CoreLogic Case-Shiller 20-city home price index in the United States rose 4.6 percent year on year in December 2022, below a 6.8 percent increase in November and forecasts of 5.8 percent growth.

The Conference Board's Chicago Business Barometer decreased to 43.6 in February from 44.3 in January, the lowest since November and missing the 45.0 consensus forecast by economists.

The Conference Board's consumer confidence index slipped to 102.9 in February, from a reading of 106 in January.

Gold dropped 5.6 percent for February, the first monthly loss in four months.

Silver for May delivery rose 27.80 cents, or 1.34 percent, to close at 21.071 dollars per ounce. Platinum for April delivery rose 13.60 dollars, or 1.44 percent, to close at 955.50 dollars per ounce.

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