You are here: Home » Markets » Commodities » commodity gold
Business Standard

Gold breaches $1,900 mark as dollar, yields dip after US inflation data

Spot gold was up 0.1% at $1,900.10 per ounce, as of 0518 GMT

Topics
Gold Prices | US Dollar | US Inflation

Reuters 

gold, gold price, gold rally

By Brijesh Patel

(Reuters) - edged above $1,900 an ounce level on Friday, supported by a pullback in the dollar and lower bond yields, after data showing a rise in U.S. inflation was viewed inadequate to alter the Federal Reserve's easy monetary policy.

Spot gold was up 0.1% at $1,900.10 per ounce, as of 0518 GMT. Prices have risen more than 0.5% this week.

U.S. gold futures rose 0.3% to $1,902.70 per ounce.

Data showed U.S. consumer prices rose solidly in May, leading to the biggest annual increase in nearly 13 years, while weekly jobless claims dropped to their lowest level in nearly 15 months last week.

"The rise in U.S. inflation failed to spark a tapering sell-off. That saw bond yields edge lower helping gold to bounce back," said Jeffrey Halley, senior market analyst at OANDA.

"The FOMC next week is now likely to be a non-event, and barring a sharp rise in the dollar. Gold looks set to test resistance at $1,920 early next week, as the asset price appreciation trade gains new momentum."

The benchmark U.S. Treasury yields dropped to a three-month low, reducing the opportunity cost of holding non-interest bearing bullion.

The dollar index, meanwhile, fell 0.1% after hitting a near one-week high in the previous session.

On Thursday, the European Central Bank kept its monetary policy unchanged and pledged a steady flow of stimulus over the summer.

Focus now shifts to Fed's June 15-16 policy meeting.

The Fed is likely to announce in August or September a strategy for reducing its massive bond-buying program, but would not start cutting monthly purchases until early next year, according to a Reuters poll.

Spot gold's break above $1,911 per ounce could lead to a gain into $1,932-$1,953 range, according to Reuters technical analyst Wang Tao.

Silver rose 0.4% to $28.07 per ounce, while platinum gained 0.1% to $1,151.98.

Palladium eased 0.1% to $2,772.71 and was on track for a weekly decline.

 

(Reporting by Brijesh Patel in Bengaluru; Editing by Ramakrishnan M. and Rashmi Aich)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, June 11 2021. 12:09 IST
RECOMMENDED FOR YOU
.