Gold slips as Treasury yields, dollar climb ahead of inflation data

[BENGALURU] Gold prices fell on Tuesday (Apr 12) as Treasury yields and the dollar gained ahead of US inflation data, a reading that could help investors get more clues about the Federal Reserve's monetary policy stance.

Spot gold was down 0.2 per cent at US$1,950.52 per ounce by 1.00 am GMT, after hitting a near 1-month peak of US$1,968.91 on Monday. US gold futures were up 0.3 per cent at US$1,954.00.

The benchmark 10-year US Treasury yield rose on Monday to its highest in more than 3 years as investors awaited the latest inflation readings for indications on how hawkish the Federal Reserve will need to be in its policy path.

While gold is considered a hedge against inflation, higher US interest rates and yields increase the opportunity cost of holding bullion.

The US dollar index hovered near 2-year highs, making gold less attractive for other currency holders.

Limiting gold's slide, however, safe-haven demand sustained after Ukraine said it expects Russia to begin an offensive soon in the eastern Donbas region.

Spot silver shed 0.4 per cent at US$24.97 per ounce and platinum was up 0.1 per cent to US$978.00.

Auto-catalyst metal palladium was up 0.7 per cent at US$2,448.14 after hitting a peak of US$2,550.58 in the last session, its highest since Mar 24.

Newly refined Russian platinum and palladium was suspended from trading in London from Friday, denying access to the metals' biggest trade hub because of the Ukraine war. REUTERS