Gold rose slightly in the Asian session after going through a volatile trading session earlier, which saw significant volatility movements on the precious metal.
At the start of the Asian session, spot gold traded higher at $ 1,810 per ounce, after falling to a one -week low of $ 1,790 per ounce in the New York session.
Revealing the movement of gold in the previous New York session, risky market sentiment has helped the US dollar to gain demand. Following the rise of the dollar index to a daily high of 92.42, it pushed the price of gold to plunge lower.
However, with the S&P 500 index hitting all -time highs, the strengthening momentum of the US dollar faltered again and this has paved the way for a recovery in gold prices.
The market’s focus is now shifted to the release of US consumer price index (CPI) data tonight, which is expected to continue to show improvement, but with slower growth.
Previous price action suggests that investors still want to maintain a position above $ 1,800 per ounce, due to uncertainty about Covid-19 plaguing the market and the prospects for a weaker recovery.
