Gold falls as US Treasury yields rise

Gold prices fell on Friday, heading for a weekly decline as Treasury yields rose, while investors awaited monthly inflation data in the United States, seeking indications of the future of the Federal Reserve’s monetary policy.
Spot gold fell 0.2% to $1,844.78 an ounce by 03:11 GMT, while US gold futures fell 0.3% to $1,848.10.

US 10-year Treasury yields have increased, hurting demand for non-yielding gold.

Market participants are eagerly awaiting US CPI data expected later today to ensure that decades of high inflation peaked in March. Gold prices are down about 0.3% this week.

Stephen Innes, managing partner at SBI Asset Management, said that a strong CPI reading could signal the Federal Reserve’s direction to tighten further and make the price of the yellow metal test the $1,825 level and push it down to $1,800. .

The Federal Reserve is expected to raise its key interest rate by 50 basis points in June and July, with increased chances of a similar move in September, according to a Archyde.com poll of economists who do not expect rate hikes to stop until the year. next.

As for other precious metals, spot silver fell 0.1% to $21.63 an ounce, platinum fell 0.6% to $966.13 while palladium rose 0.7% to $1,938.01. And the three are on their way to record a weekly decline.

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