Gold prices edge up from 2-week low as inflation worries persist

By Seher Dareen

(Reuters) – Gold prices inched up from a two-week low on Wednesday, supported by worries over rising inflation, though a stronger greenback and rising U.S. yields stored beneficial properties in examine.

Spot gold rose 0.3% to $1,842.83 per ounce by 1516 GMT, earlier hitting its lowest since May 19 at $1,827.80. U.S. gold futures fell 0.1% to $1,846.50.

“The underlying theme of the gold market remains to be worrisome inflation, which might be going to maintain a flooring beneath the market and immediate a little bit bit extra shopping for curiosity,” Kitco senior analyst Jim Wycoff mentioned

“We’re seeing some quick protecting within the futures market and little little bit of discount looking within the money market after the current promoting stress.”

However, making gold dearer for holders of different currencies, the greenback index gained 0.3%, whereas U.S. Treasury yields additionally rose. [USD/] [US/]

Euro zone inflation information was a lot larger than anticipated on Tuesday, rising stress on the European Central Bank forward of its coverage assembly subsequent week.

Investors are additionally looking forward to U.S. nonfarm payrolls information and May’s inflation information for clues into the financial system and outlook for the Federal Reserve’s coverage tightening path.

Markets have priced half-point rate of interest rises from the Fed this month and subsequent, though uncertainty clouds concerning the outlook past that.

Bullion is taken into account a hedge towards inflation and a secure haven throughout occasions of political and financial uncertainty. However, larger rates of interest improve the chance value of holding gold and boosts the greenback.

“As the yr unfolds, we count on gold prices to revert to taking their cue primarily from actual yields and development decrease, albeit stay elevated in comparison with historic ranges,” Standard Chartered mentioned in a word.

Spot silver rose 1.1% to $21.76 per ounce, having hit a two-week low earlier.

Platinum rose 2.6% to $989.34, and rose as a lot as 4.4% to $1,006.93 earlier. Palladium was up 0.5% to $2,009.93.

(Reporting by Seher Dareen in Bengaluru;Editing by Amy Caren Daniel)

(Only the headline and movie of this report could have been reworked by the Business Standard workers; the remainder of the content material is auto-generated from a syndicated feed.)

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