Gold edges higher as dollar slips; US Fed outlook in focus
GOLD prices ticked up on a softer dollar in early Asian hours on Thursday (May 11), while investors awaited further clarity on the US Federal Reserve’s monetary policy path.
Spot gold rose 0.2 per cent to US$2,032.48 per ounce, as of 0030 GMT. US gold futures were up 0.1 per cent at US$2,039.00.
The dollar index slipped 0.1 per cent, making greenback-priced bullion more affordable for overseas buyers.
The annual increase in US consumer prices slowed to below 5 per cent in April for the first time in two years, potentially providing cover for the central bank to pause further interest rate hikes next month.
Bullion prices initially rose on Wednesday after US inflation data was released, before turning negative on profit-taking.
Markets are currently pricing in a 99 per cent chance of the US central bank holding rates at their current level in June.
Lower interest rates boost non-yielding bullion’s appeal.
US President Joe Biden piled pressure on Republican lawmakers on Wednesday to move quickly to raise the country’s US$31.4 trillion debt ceiling or risk throwing the world’s largest economy into a recession.
The Bank of England is poised to raise borrowing costs for the 12th meeting in a row later in the day.
Spot silver fell 0.1 per cent at US$25.39 per ounce, platinum edged 0.1 per cent lower to US$1,113.38, and palladium lost 0.3 per cent at US$1,602.55. REUTERS
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