Gold Up -Than-Expected U.S. Consumer Prices Increase Inflation
By Administrator_ India
Gold was down on Thursday morning in Asia over higher-than-expected U.S. consumer prices for April, increasing concerns about higher inflation.
Gold futures were down 0.34% to $1,816.65 by 11:42 PM ET (3:42 AM GMT).
The benchmark U.S. 10-year Treasury yield climbed to its highest level in more than a month, after an auction of 10-year notes saw strong demand.
The U.S. core CPI for April jumped 0.9% month-on-month, increasing by the most in nearly 12 years. It surpassed both the 0.3% growth in forecasts prepared by investing.com as well as March’s 0.3% growth. The surge in consumer prices was driven by booming demand amid the reopening economy against a supply shortage.
Investors are concerned that the signs of a long period of higher inflation will prompt the U.S. Federal Reserve to hike interest rates.
On the stimulus front, President Joe Biden said after meeting with Republican leaders on Wednesday, that he is willing to compromise on his proposed trillions of dollars in infrastructure spending. However, he added that he would move forward with the plan without Republican support if necessary.
In the U.K., the RICS House Price Balance for April grew 75%, hitting its highest level in four decades as buyers sought to benefit from an extended tax break.
In other precious metals, palladium jumped 1.7% to $2,903.68 per ounce, silver gained 0.5%, and platinum rose 0.4%.