Gold prices held near four-month highs on Tuesday as a slumping dollar and growing inflation concerns boosted the precious metal’s safe-haven appeal.
Spot gold was up 0.1 percent at $1,868.65 per ounce, after having hit its highest since Jan. 29 earlier in the session. U.S. gold futures were up 0.1 percent at $1,869.25.
The dollar index continued to slip and benchmark 10-year Treasury note yields held at 1.654 percent amid expectations that U.S. interest rates will stay lower for longer.
The U.S. Federal Reserve will release the minutes from its April monetary policy on Wednesday as investors look for further insight as to what it will take for Fed policymakers to begin tightening sooner than expected.
Federal Reserve Vice Chair Richard Clarida said during a webinar that the weaker-than-expected April payroll report showed the U.S. economy had not yet reached the threshold to warrant scaling back the central bank’s massive bond purchases.
Separately, Dallas Fed President Robert Kaplan reiterated his view that he does not expect interest rates to rise until 2022.
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