Gold prices inch higher ahead of U.S. inflation data

div classBodysc17zpet90 cdBBJodivpBy Asha Sistlap

pReuters – Gold prices inched higher on Tuesday as appetite for risk weakened ahead of U.S. inflation data that could support the Federal Reserves aggressive policy stance to contain rising pricing pressures.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pSpot gold was up 0.2 at 1,956.78 per ounce, as of 0621 GMT, after hitting its highest in nearly a month on Monday. U.S. gold futures rose 0.6 at 1,960.30.p

pABC Bullions global general manager, Nicholas Frappell, said gold was catching a bid on weaker equities and geopolitical tensions while facing headwinds from weakening crude, a firmer dollar and rising real yields.p

pMSCIs broadest index of AsiaPacific shares outside Japan was down 0.3, as investors braced for redhot U.S. inflation data that is expected to show prices last month gained the most in more than 16 years. [MKTSGLOB] p

p“U.S. CPI expectations are for 1.50 mm, if the number is materially lower, expect gold to weaken,” Frappell said.p

pThe dollar index was back above 100, testing last weeks near twoyear high of 100.19, while the benchmark 10year Treasury yield rose to its highest since December 2018. [FRX] [US]p

pA stronger dollar makes gold less attractive for other currency holders, while higher U.S. interest rates and yields increase the opportunity cost of holding bullion, which is also used as a hedge against inflationary pressures.p

pAutocatalyst metal palladium gained 0.9 to 2,453.83, after hitting its highest since March 24 at 2,550.58 on Monday following a sale block by London markets.p

p“Palladium is basically in a choppy consolidation after that reversal on Monday. About 2,600 is the top and 2,150 is the bottom and in there is a bunch of back and forth chop,” said Ilya Spivak, a currency strategist at DailyFX.p

p“Much of what happens next in terms of real trend development will depend on some kind of a sign that negotiations have taken a step toward a substantive ceasefire,” he said, referring to the RussiaUkraine talks.p

pAmong other precious metals, spot silver was up 0.3 at 25.16 per ounce and platinum rose 0.7 to 983.66. p

p

pp Reporting by Asha Sistla in Bengaluru Editing by Subhranshu Sahu and Sherry JacobPhillipsp

divdivdiv classBodysc17zpet90 cdBBJodivdivdiv