Gold prices decline

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Gold ticked up on Friday but was on course for a second straight weekly fall after hot inflation data cooled prospects of early rate cuts by the Federal Reserve.

Spot gold was up 0.4 percent to $2,012.86 per ounce, but has lost 0.6 percent for the week so far.

US gold futures settled 0.5 percent higher to $2024.1.

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The dollar index was up for the week so far, and the benchmark 10-year Treasury yield extended gains, making gold less attractive.

Data showed that US producer prices increased more than expected in January. Another report on Tuesday showed that US consumer prices rose more than expected last month.

Even though gold is considered an inflation hedge, higher interest rates dim non-yielding bullion’s appeal.

As the Fed is not likely to cut interest rates in March, gold will probably struggle to gain much above the $2,000 level, said Everett Millman, chief market analyst at Gainesville Coins -Reuters

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