Written by Swati Verma
(Reuters) – Gold prices held near their lowest levels in a month on Friday, shrugging off cooler-than-expected US inflation figures for the past month, as bullion continued on course to end its worst week in seven days as dollar and US bond yields remained strong.
Spot gold rose 0.2% to $1,916.53 an ounce by 0727 GMT, but was trading near its lowest level since July 7 touched earlier in the day. US gold futures settled at $1,948.80.
Gold rose as much as 0.8% on Thursday after data showed that the US Consumer Price Index (CPI) rose less-than-expected in July, increasing bets that the Federal Reserve will not raise interest rates again in 2023.
Increases in interest rates tend to raise bond yields and thus increase the opportunity cost of holding non-yielding bullion.
“Once the CPI dust settles, markets seem to be remembering that core CPI at 4.7% is still not good — even if it is slower than expected,” said Matt Simpson, senior analyst at City Index, adding that gold’s rally is lacking. to contentment. .
“We also have Fed member Mary Daley putting a fly in the dovish ointment, saying whether another comment or increase at the next Fed meeting is ‘to be determined.’ That saw the US dollar regain strength.”
Gold prices are down around 1.3% so far for the week as the US Dollar Index and benchmark 10-year Treasury yields were on track for their fourth consecutive weekly gain. (usd/) (us/)
“A moderate inflation rate and strong employment data present a perfect balance for the macro economy,” ANZ analysts wrote in a note, “which pushes the possibility of a hard landing, which reduces safe-haven inflows to gold and also supports a higher rates vs. longer scenario.”
Spot silver rose 0.2% to $22.72 an ounce and platinum rose 0.6% to $912.04. However, both were on course for a fourth straight losing week.
Palladium rose 0.3% to $1,290.43, looking forward to its best week since mid-June.
(Reporting by Swati Verma in Bengaluru; Editing by Sherry Jacob-Phillips and Subranshu Sahu)