Gold investors in wait-and-see mode before US CPI data

GOLD prices were little changed on Wednesday (Jun 8) as investors awaited the US inflation report this week for further cues on the economy as central banks worldwide seek to cool surging prices.

Spot gold was down 0.1 per cent at US$1,850.41 per ounce, as of 12.37 am GMT, while US gold futures added 0.1 per cent to US$1,853.30.

The World Bank on Tuesday slashed its global growth forecast by nearly a third to 2.9 per cent for 2022, warning that Russia's invasion of Ukraine has compounded the damage from the Covid-19 pandemic, and many countries now faced recession.

The US trade deficit narrowed by the most in nearly 9-1/2 years in April as exports jumped to a record high, putting trade on course to contribute to economic growth this quarter.

Japan's economy shrank an annualised 0.5 per cent in the first quarter, slightly better than the initial estimate of a 1.0 per cent contraction, revised government data showed on Wednesday.

US Treasury Secretary Janet Yellen told senators on Tuesday that she expected inflation to remain high and the Biden administration would likely increase the 4.7 per cent inflation forecast for this year in its budget proposal.

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The Treasury Department also made clear that gold-related transactions involving Russia may be sanctioned, and is closely monitoring any efforts to circumvent US sanctions through the use of gold, Yellen said.

Newmont's Africa unit has sold 3,500 ounces of gold to the Bank of Ghana under a central bank domestic gold purchasing programme launched in June 2021, the company said in a statement on Tuesday.

In other metals, platinum fell 0.1 per cent to US$1,009.84 an ounce and palladium rose 0.4 per cent to US$1,991.97. Silver eased 0.1 per cent to US$22.19. REUTERS