Gold gains as dollar, Treasury yields weaken after US inflation data

Gold gains as dollar, Treasury yields weaken after US inflation data

A weaker dollar makes gold attractive for overseas buyers, while lower Treasury yields reduce the opportunity cost of holding zero-yield bullion.







Reuters









May 12, 2022 / 07:21 AM IST





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Gold gained on Thursday as the dollar and Treasury yields slipped after U.S. consumer price data suggested inflation might have peaked in April, allaying some concerns of more aggressive Fed rate hikes.

A weaker dollar makes gold attractive for overseas buyers, while lower Treasury yields reduce the opportunity cost of holding zero-yield bullion.

FUNDAMENTALS

* Spot gold was up 0.2% at $1,855.11 per ounce, as of 0103 GMT, having risen as much as 1.1% in the previous session. U.S. gold futures rose 0.2% to $1,856.90.

* The dollar fell, lifting demand for greenback-priced gold, after economic data showed inflation remained high but was unlikely to lead the U.S. central bank to shift to a more aggressive path of monetary policy. [USD/]

* The consumer price index (CPI) rose 0.3% last month, the smallest gain since August, the Labor Department said on Wednesday, versus the 1.2% month-to-month surge in the CPI in March, the largest advance since