Spot gold slipped 0.9% to $1,945.99 per ounce by 12:07 p.m. EDT (1607 GMT)
Gold prices fell on Wednesday, weighed by an uptick in U.S. bond yields, while investors looked forward to inflation data and Federal Reserve policy meeting next week for more clarity on interest rate path.
Also Read– TCS successfully addresses hiring challenges, annual report reveals
Spot gold slipped 0.9% to $1,945.99 per ounce by 12:07 p.m. EDT (1607 GMT).
U.S. gold futures fell 1% to $1,961.50.
Benchmark U.S. 10-year Treasury yields rose to a more than one-week high. The dollar index steadied against its rivals. [US/]
Read More: BSNL Revival Package: CCEA Approves Rs 89,047-Crore Support, Says Report
“Yields have remained relatively elevated keeping some light pressure on the gold market,” said David Meger, director of metals trading, High Ridge Futures.
“Clearly inflation is still the main focal point of this market. At this point the expectation is that the Fed is going to pause. However, if those inflationary numbers remain extremely elevated, you could see a shift in outlook.”
Read More: 31% People Confident India Will Not Face Recession: Axis My India Survey
The U.S. inflation report for May, due on June 13, ahead of the Fed meeting, will provide investors with more clarity about the health of the world’s largest economy.
The U.S. economy is strong amid robust consumer spending but some areas are slowing down, U.S. Treasury Secretary Janet Yellen said, adding that she expects continued progress in bringing inflation down over the next two years.
Read More: Google Pay users can make UPI payment by using Aadhaar card, no debit card needed
The Fed will not raise interest rates for the first time in well over a year at its June 13-14 meeting, according to economists polled by Reuters.
Gold prices are highly sensitive to rising U.S. interest rates, as these increase the opportunity cost of holding non-yielding bullion.
Also Read– SBI Property Auction: Looking For An Affordable House In Kalyan? Check Auction Details Here
Data from China showed exports shrank much faster than expected in May, hinting of a slowing global economy that could crimp demand for the precious metal, Jim Wyckoff, senior analyst at Kitco, wrote in a note.
Silver dipped 0.4% to $23.48 per ounce, platinum fell 1.1% to $1,020.75, while palladium slipped 1.2% to $1,395.99.
