Gold finishes in green as focus shifts to US monetary path

Gold prices rallied today, May 14, as the US dollar remained flat ahead of the release of the US producer price inflation's April reading.

Bullion for June delivery rose 0.7%, or $16.9, at $2,359.9 per ounce.

Meanwhile, the US dollar index, which gauges the greenback's strength against a basket of six currencies, plummeted by 0.15% at 105.04 points at 08:41 pm Makkah time — the lowest since May 7 (105.03 points).

“I do not think that [an interest rate cut is] likely, based on the data that we have, that the next move that we make would be a rate hike," Fed Chairman Jerome Powell said. "I think it is more likely that we will be at a place where we hold the policy rate where it is.”

According to data from the US Department of Labor, the Producer Price Index climbed by 0.5% in April, exceeding market expectations of 0.3%, soaring 2.2% on an annual basis, the largest pace of increase in a year.