Gold prices rose on Wednesday after the dollar and bond yields retreated as investors awaited US inflation data that could offer more cues on the Federal Reserve’s rate-hike policy path.
Spot gold rose 0.4 percent to $1,940.53 per ounce, its highest since June 20.
US gold futures were up 0.5 percent at $1,946.00.
Making gold cheaper for holders of other currencies, the dollar index fell 0.2 percent to its lowest level since May 11. Benchmark 10-year US Treasury yields also slipped to their lowest in nearly a week.
“There has been some renewed confidence in gold prices lately, given the broad expectations for the upcoming US CPI to reflect further moderation in pricing pressures,” said Yeap Jun Rong, market strategist at IG.
Economists polled by Reuters expect inflation data for June, due at 1230 GMT, rising by 3.1 percent, after May’s 4 percent jump, which would be the lowest reading since March 2021. Core rates are expected to have dropped to 5 percent from 5.3 percent, still significantly above the Fed’s 2 percent target rate.
Markets see a 92 percent chance of the Fed raising rates by 25 basis points at their policy meeting on July 25-26, as per CME’s Fedwatch tool.
