“Gold Prices Fall as Dollar Rises and Markets Await US Inflation Data”

Gold prices continued their losses for the second session today, Thursday, with the rise of the dollar, while markets evaluate US inflation data for more clarity about the monetary policy path of the Federal Reserve (US Central Bank), while awaiting the Bank of England’s decision on the interest rate.

By 09:19 UTC, spot gold declined 0.4% to $2022.19 an ounce, and US gold futures also fell 0.4% to $2029.60.

The annual increase in consumer prices in the United States slowed to less than 5% in April, for the first time in two years, yet the consumer price index rose on a monthly basis in April 0.4% after increasing 0.1% in March.

The dollar rose today, Thursday, with the Chinese yuan falling to its lowest level in two months at 6.9413 against the dollar, after more indications of a weak recovery in China following the Corona pandemic, which cast a shadow over the global economic outlook.

The dollar index, which measures the performance of the US currency, against a basket of 6 major currencies, rose 0.05% to 101.46 points.

Although gold and the dollar compete as safe-haven assets, a stronger dollar makes gold more expensive for overseas buyers.

As for other precious metals, they are:

• Silver fell 2.1% to $24.90 an ounce.
• Platinum fell 1.7% to $1,095.37.
• Palladium fell 2%, recording $1,575.81.