Gold prices fell after the release of US inflation data
Gold prices fell today, Wednesday, from a record high level, amid the rise of the dollar and US Treasury bond yields, after the release of data showing that inflation in the United States rose more than expected, reducing expectations of an early cut in US interest rates.
Spot gold prices fell 0.6% to $2,338.19 per ounce by 1258 GMT, and US gold futures contracts fell 0.1% to $2,360.7. The dollar index rose 0.5%, and US Treasury bond yields jumped after the release of data that reduced the attractiveness of the precious metal, as it does not generate a return.
Price inflation in the United States showed stubbornness again, after the consumer price index recorded an increase of 3.5% in March, compared to last year’s prices, which exceeded expectations in a way that may pressure the Federal Reserve (the US central bank) to postpone the interest rate cut.
A Labor Department report said that the consumer price index rose 0.4% on a monthly basis in March, compared to experts’ expectations of a 0.3% rise in a Reuters poll.
The index rose by 3.2% in February compared to last year. Data from the US Department of Labor showed that the rise in gas prices was the biggest influence on the recent rises.
The new reading confused the markets, which had not begun official trading at the time of the announcement, as benchmark ten-year US Treasury bond yields jumped, exceeding the 4.5% level for the first time since mid-November.
Tai Wong, an independent metals trader based in New York, said that gold prices fell; Data that showed inflation rising more than expected contributes to expectations that interest rate cuts will be postponed, or that this will occur at a lower rate.
Gold prices rose to a record level of $2,365.09 yesterday, Tuesday.
As for other precious metals, silver fell in spot transactions by 0.5% to $28.01 per ounce, after recording the highest level in almost three years, yesterday, Tuesday. Platinum fell 1% to $969.05, and palladium fell 1.9% to $1,071.75.
(Reuters, Al-Arabi Al-Jadeed)
2024-04-10 17:04:17
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