Gold prices fell this Wednesday, after rising in the two previous sessions.
Gold prices fell this Wednesday, after rising in the two previous sessions, after the US inflation data marked a reduction in April.
Spot gold lost 0.2% to trade at $2,030.70, while US gold futures settled down 0.3% at $2,037.10.
“There remain risks that the Fed will have to keep rates higher for longer…Gold is going to need more rate cuts to price aggressively and continue its rally,” Edward Moya said. , OANDA Senior Market Analyst.
Gold rose as much as 0.7% on reports that the US Consumer Price Index (CPI) rose 4.9% in April from a year earlier, less than expectations for a 5% rise, before lose ground. In April, the month-on-month CPI rose 0.4%, after rising 0.1% in March.
The data derailed modest momentum that had been building for an 11th straight interest rate hike in June, with the bulk of Fed rate futures betting on a pause.
However, “Gold may struggle in the near term as core inflation is flat from last month and well above the Federal Reserve’s target.” according to Ole Hansen, head of commodity strategy at Saxo Bank.
Although gold is considered a hedge against inflation, rising interest rates make no-yield bullion less attractive.
Spot silver fell 1% to $25.35 an ounce, platinum rose 0.4% to $1,109.60 and palladium gained 2.1% to $1,602.7 .
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
