Gold Down on Higher U.S. Treasury Yields Ahead of U.S. Inflation Data

By Zhang Mengying – Gold was down on Friday morning in Asia as U.S. Treasury yields rose, with investors looking to U.S. inflation data for more clues on the interest rate hikes path of the U.S. Federal Reserve.

were down 0.32% to $1,846.85 by 11:20 PM ET (3:20 AM GMT). The , which normally moves inversely to gold, inched down on Thursday morning.

Benchmark edged up, denting demand for zero-yield gold.

The announced on Thursday that it will prepare a quarter-point interest rate hike in July and suggested a bigger hike in the fall over long-lasting high inflation. The inflation in the eurozone now exceeds 8%. The ECB also said that it will end net asset purchases on July 1, 2022.

Now investors shifted their focus to the and assess how aggressive the interest rate hikes from the Fed would be.

U.S. increased to the highest level in nearly five months last week, suggesting that the job market remained tight.

In Asia Pacific, China’s factory factory-gate inflation cooled to its slowest pace in 14 months in May. Official data released earlier in the day showed that the rose 6.4% year-on-year in May, while a rise of 8.0% was recorded in April. 

In other precious metals, fell 0.74%. was down 0.45%, and gained 0.5%.

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