Gold traded lower as the dollar gained ground against majors, following BoE's inflation report that project that inflation will remain elevated over the near-term and well above the desired rate of 2.0 percent set by the bank. Dollar benefited from the report and rose on the daily scale on the US dollar index.
Gold for immediate delivery traded at 1,371.63 an ounce, while setting a high of 1,377.78 an ounce and a low of 1,370.29 an ounce, compared with the opening levels of 1,373.50. Gold futures traded higher by 0.15% or $2.100 to trade at $1,376.2000 an ounce.
Major Market Movers
Today, UK released important inflation data showing that price acceleration is continuing, to add to concerns that UK will suffer from high inflation rates this year, ramping up the need to raise interest rate.
King sent an open letter to the Chancellor of the Exchequer revealing that inflation will probably move between 4% and 5% over the coming few months to remain above target in 2011 and come back in 2012, clarifying that the rise in energy prices, sterling's depreciation since 2008and the VAT were the main reasons behind the rapid price acceleration.
He added that further details will be revealed in February's inflation report due this week, which will proved updated growth and inflation forecasts.
The S&P GSCI index closed at 649.77 after dropping 7.03% in trading from the opening levels of 658.38. The Reuters Jefferies CRB index gained 1.88% to close trading 338.17, compared with the opening levels of 337.64.
Gold Fixes & Dollar's Movement:
Talking about metal Fixes (Feb 16), Gold fixes at AM Fix was set at $1,374.50 an ounce, and by the PM fixing (Feb 15) at $1,372.75 an ounce, meanwhile silver fixing was set at $30.77000 an ounce and Platinum AM Fixing (Feb 16) was set at $1,838.00 an ounce, and at 1,828.00 an ounce during the PM fixing (Feb 16), finally the Palladium AM fixing was set at $842.00 at (Feb 16) AM fixing while being set by PM fixing (Feb 16) at $840.00 an ounce.
The US dollar index, which tracks the performance of the dollar against six-majors, traded at 78.70, compared with the opening levels of 78.39, while setting a high of 78.79 and a low of 78.22.
Silver for immediate delivery traded lower at $30.38 an ounce, compared with the opening levels of $30.76 an ounce, while setting a high of $30.88 an ounce and a low of $30.34 an ounce. Silver future contracts traded higher by 0.11% or 0.034 to trade at 30.730 an ounce
Platinum for immediate delivery traded higher by $3.00, at $1,829.00 an ounce, Palladium gained by $9.00 to trade at $842.00 an ounce.