By Mahmoud Gamal
Mubasher: The upbeat US inflation data are increasing speculations over hiking US interest rates this week, which are likely to back US dollar, but to weaken gold prices.
The US Commerce Department said the consumer price index (CPI) rose 0.2% in August, compared to expectations for a 0.1% gain.
On Friday, the US dollar exchange rate rose to 96.06 against a basket of currencies.
Meanwhile, gold prices hit two-week low after falling by 0.4% to $13010.20 per ounce.
The US dollar is technically delivering a more solid performance amid strong expectations that the US interest rates are likely to rise to 0.75%, which by turns will push the US dollar XE rate to 96.06, said Alaa Farhat, market analyst at Capital Trust.
On the other hand, gold prices are forecast to level down to $1301.01-1285.95 per ounce on strongly expected higher US interest rates, said market analyst Mohamed Abdullah.
"Traders are advised to decrease their buying positions after the price breaks below $1,300 an ounce", Abdullah concluded.
