Closing the trading session on 13/2, global spot gold prices rose by 120 USD to 5.041 USD an ounce. This reversed the previous session's trend, which saw prices fall by 3% to a nearly one-week low.

The market rose during the week's final session, driven by declining US inflation, which increased expectations for the Federal Reserve (Fed) to cut interest rates. Overall for the week, gold prices increased by 1,2%.

Global gold prices rose back to the 5,000 USD mark during the 13/2 session. Chart: Kitco

Spot silver prices increased by nearly 3% to 77,3 USD an ounce. However, for the entire week, the metal's price saw a slight decrease, attributed to the previous session's nearly 11% loss.

"Gold, and especially silver, saw price increases due to US inflation data for January. This report alleviated previous concerns about price outlooks following US labor data," stated Tai Wong, an independent precious metals analyst in the US.

The US Consumer Price Index (CPI) rose by 2,4% in January compared to the same period last year. This rate was lower than the previous month (2,7%), according to the US Department of Labor.

Investors currently anticipate the Federal Reserve (Fed) will cut interest rates by a total of 63 basis points (0,63%) this year. The first reduction is expected in July, according to data firm LSEG. Gold prices tend to rise in a low interest rate environment.

In the physical market, gold demand in China remained stable ahead of the Lunar New Year. Meanwhile, prices in India decreased.

ANZ Bank raised its Q2 gold price forecast to 5.800 USD an ounce from 5.400 USD previously, driven by safe-haven demand. Meanwhile, silver prices may not see the sharp increases as before. While still supported by strong investment demand, industrial use demand has declined as buyers hesitate due to high prices.

Platinum prices closed the 13/2 session up by 3,8% at 2.075 USD an ounce. Palladium added 3,6%, closing at 1.674 USD. Both metals recorded a weekly loss.

Ha Thu (according to Reuters, Kitco)