Gold prices were flat to slightly lower on Wednesday as investors await U.S. consumer inflation data due out later in the day for further cues on the Fed’s stance on inflation.
Spot gold slipped 0.1 percent to $1,834.75 per ounce, while U.S. gold futures were little changed at $1,834.85.
The U.S. dollar hovered above a 2-1/2-month low versus major peers and U.S. 10-year Treasury yields hit over 1-week high ahead of the CPI data expected to show a sharp rise in annual U.S. inflation, boosted by last April’s low base.
Despite various U.S. Federal Reserve officials reiterating a firmly dovish policy stance, it is feared that more sustained inflation might force the Federal Reserve to tighten monetary policy sooner than indicated by officials in their projections.
German consumer price inflation hit a two-year high in April, final data from Destatis confirmed earlier today.
The consumer price index rose 2.0 percent year-on-year following 1.7 percent increase in March. The latest inflation rate was the highest since April 2019, when it was at the same level. The preliminary estimates for all figures were confirmed.
The material has been provided by InstaForex Company – www.instaforex.com