Gold Firms as Dollar Falls Ahead of US Inflation Data

Gold rose on Wednesday, supported by a decline in the dollar and US Treasury bond yields, as investors brace for US inflation data that could determine how aggressively the Federal Reserve will raise interest rates. interest.

By 1144 GMT, spot gold was up 0.7% at $1,851.26 an ounce, having hit its lowest since Feb. 11 earlier in the session. US gold futures were up 0.6% at $1,851.50.

The dollar fell 0.3%, still close to a two-decade high hit on Monday, while benchmark 10-year bond yields fell from recent highs.

“Spot gold is seeing some relief as the dollar moderates and 10-year Treasury yields return below 3% ahead of US inflation data, which is highly anticipated” said Han Tan, chief market analyst at Exinity.

“If US inflation persistently accelerates, spot gold could break below its 200-day simple moving average and immediate Fibonacci support around $1,830,” he added.

Analysts expect a sharp decline in the monthly growth of the US Consumer Price Index for April, cooling to 0.2% from 1.2% in March, accumulating an annual increase of 8.1%.

In other precious metals, spot silver was up 2.3% at $21.72 an ounce; platinum rose 2.8% to $990.59; and palladium was down 0.7% at $2,051.52.