empty
 
 

2021.05.1310:41:00UTC+00Gold Slides Amid Rate Hike Fears

Gold prices edged lower on Thursday to extend losses from the previous session after unexpectedly strong U.S. consumer price data spurred bets on a change in tone from the Federal Reserve.

Spot gold dipped 0.3 percent to $1,810.64 per ounce, after having fallen over 1 percent on Wednesday. U.S. gold futures were down 0.7 percent at $1,810.45.

Overnight data showed U.S. consumer inflation rose at its fastest rate since 2008 last month, raising worries about whether the Fed will have to tighten its monetary policy sooner than it would like.

Benchmark U.S. 10-year Treasury yields jumped to their highest in more than a month and the dollar rose against its rivals despite Fed officials playing down the risk of inflation.

Fed Vice Chair Richard Clarida said on Wednesday that the U.S. central bank continues to believe the sharp price increases over the past two months are due to the rebound following the unprecedented shock inflicted by the Covid-19 pandemic and will not last.

U.S. producer price data for April and weekly jobless claims figures, due later in the session may sway sentiment as the day progresses.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback