22.3 C
New York
Tuesday, May 24, 2022

Gold Prices Ride Flatter Yield Curve to Session High Amid Subdued Inflation

Gold Prices Ride Flatter Yield Curve to Session High Amid Subdued Inflation© Reuters.

Investing.com – Gold prices remained close to session highs supported by falling U.S. bond yields and a weaker greenback as inflation data undershot economists’ estimates.

for June delivery on the Comex division of the New York Mercantile Exchange rose by $7.60 or 0.57%, to $1,320.60 a troy ounce.

The fell below 3%, pressuring the , lifting gold prices higher as unexpected weakness in consumer inflation, prompted traders to scale back their expectations for a faster pace of inflation.

The Labor Department said on Thursday its rose 0.2% in April missing economists’ forecast for a 0.3% rise. While year-on-year the CPI rose 2.1% in April missing economists’ forecast.

“The inflation threat is simply not materializing. This will take some wind out of the remaining Fed hawk’s sails and put some of those rate hikes on the horizon in jeopardy,” Bank of Tokyo Mitsubishi said on Thursday.

Gold is sensitive to moves lower in both bond yields and the U.S. dollar – A weaker dollar makes gold cheaper for holders of foreign currency. While a fall in U.S. bond yields, limits the opportunity cost of holding non-yielding assets such as bullion.

Rising geopolitical tensions also propped up demand for the yellow metal amid reports Iran and Israel exchanged missiles in Syria overnight.

The uptick in gold prices on Thursday, kept the precious metal on track to notch its second weekly win.

In other precious metal trade, rose 1.43% to $16.77 a troy ounce, while added 1.17% to $927.30 an ounce.

rose 1.75% to $3.111.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: Investing.com

Related Articles

Stay Connected

- Advertisement -

Latest Articles

Popular Articles