Last updated: July 12, 2023, 1:05 AM IST
New York, United States of America (USA)
Ready to be minted 50g gold bars are pictured at the factory of refiner and bar manufacturer Argor-Heraeus in Mendrisio, Switzerland July 13, 2022. (Reuters)
Gold prices are rising as dollar and bond yields fall ahead of US inflation data. Hunt for Gold for Third Consecutive Gain, Eyes on Consumer Price Report
Gold prices rose slightly higher on Tuesday as dollar and bond yields fell ahead of US inflation data that could provide more clues to the Federal Reserve’s rate hike trajectory.
Spot gold was up 0.4% to $1,931.83 an ounce at 2:11 p.m. EDT (1811 GMT), poised for a third consecutive session of gains. US gold futures rose 0.3% to $1,937.10.
Making gold cheaper for holders of other currencies caused the dollar index to fall 0.3% to its lowest level since May 11. The benchmark interest rate on 10-year US Treasuries also fell. [USD/] [US/]
“If we have soft inflation, it will be positive for gold and prices could go up to $1,950. I think gold will have a hard time breaking below the $1,900 level according to a current report,” said Edward Moya, senior market analyst at OANDA.
“Tariff hikes won’t break gold’s back, but it could kill the economy. So for this reason there is some support for gold.”
All eyes are on US consumer price data due Wednesday and expected to cool on a yearly basis in June.
However, markets are pricing in a 25 basis point rate hike from the Fed later this month after last week’s jobs report pointed to a resilient US economy. [FEDWATCH]
Gold is used as a safe haven in times of political and financial uncertainty, but higher interest rates increase the opportunity cost of holding non-performing precious metals.
Spot silver was down 0.1% to $23.09 an ounce, platinum was down 0.1% to $925.76, while palladium was up 0.8% to $1,249.94.
“In the very long term, silver is expected to trade significantly above the $26/oz mark and increasingly decouple from gold,” TD Securities wrote in a note.
(This story has not been edited by News18 staff and was published from a syndicated news agency feed – Reuters)
