PRECIOUS-Gold prices slip as yields gain on higher inflation – Investing.com India

PRECIOUS-Gold prices slip as yields gain on higher inflation – Investing.com India

April 12 (Reuters) - Gold prices fell on Monday as data showing very strong readings for U.S. inflation and a faster economic rebound bolstered Treasury yields, weighing on the safe-haven metal.FUNDAMENTALS* Spot gold fell 0.2% to $1,740.57 per ounce by 0118 GMT. U.S. GCv1 were steady at $1,743.70 per ounce.* U.S. Treasury yields climbed on Friday after higher-than-expected March producer price data showed inflation had risen, echoing other reports that said the world's largest economy was on a steady road to recovery from the pandemic. US/* Producer prices in the United States rose more than anticipated in March, resulting in the highest annual rise in 9-1/2 years and signalling the start of higher inflation as the economy reopens amid strengthened public health and substantial government assistance. Higher bond yields increases the opportunity cost of holding bullion, which pays no return.* However, according to Federal Reserve Chair Jerome Powell, the U.S. economy is at an "inflection point," with hopes that inflation and hiring will accelerate in the coming months, but there are dangers if a hasty reopening leads to a continuing uptick in coronavirus cases. Asian stocks traded cautiously on Monday as investors await to see whether U.S. earnings