· Gold prices slipped on Wednesday, weighed down by higher U.S. Treasury yields and a slight rebound in the dollar ahead of the much-awaited U.S. consumer price data due later in the day.
· Spot gold was down 0.3% at $1,832.05 per ounce by 0646 GMT. U.S. gold futures eased 0.1% to $1,833.60.
· “The dollar has strengthened a little bit ... if the inflation rate is higher than expected, it could encourage central banks to consider tightening their monetary policies faster than expected,” said Margaret Yang, a strategist at DailyFX.
· The dollar index was up 0.2%, making gold less appealing for other currency holders.
· Concerns of a potential acceleration in inflation dragged down the U.S. currency to a more than two-month low in the previous session and drove Asian shares to two-month lows earlier on Wednesday.
· The U.S. consumer price data due at 1230 GMT is keenly awaited by market participants to gauge inflationary pressure.
· Benchmark U.S. 10-year Treasury yields scaled a more than one-week peak, increasing the opportunity cost of holding gold.
· Some investors view gold as a hedge against higher inflation that could follow stimulus measures, but higher Treasury yields have weighed on non-yielding bullion’s appeal this year.
· “The 200-day moving average at $1851 an ounce remains formidable resistance, but gold now has clear support at $1820 an ounce,” OANDA senior market analyst Jeffrey Halley said in a note.
· Gold Price Analysis: Disappointing US CPI to revive XAU/USD’s bullish momentum
Gold is dragged down, trading around $1,830. However, a big miss on US CPI may drive XAU/USD above the 200-day moving average (DMA) at $1850, FXStreet’s Dhwani Mehta informs.
“Heading into the US CPI showdown this Wednesday, gold returns to the red zone, as the US dollar’s safe-haven demand remains in vogue amid an escalation of tensions between Israel and Gaza. Further, markets remain unnerved ahead of the US CPI April month report amid concerns of a potential acceleration in price pressures and its implication on the economy.”
“A CPI disappointment could tame inflation fears and squash Fed’s tapering and tightening expectations, which is likely to trigger a renewed burst of demand for the gold price.”
“A daily closing above the 200-DMA at $1850 could revive the bullish bets towards the $1900 mark.”
“Gold prices could challenge Tuesday’s low of $1818, below which the May 7 low of $1813 will be on the sellers’ radars. The 100-DMA at $1796 could act as a strong support if the correction from multi-month highs of $1846 regains traction.”
· Gold price dips. Experts say 'good opportunity' for buyers
Commodity experts have maintained that dip in gold price is good opportunity for investors and buyers as overall sentiment of both gold and silver is bullish
· Palladium rose 0.5% to $2,951.60 per ounce.
· Silver slipped 0.7% to $27.45 per ounce.
· Platinum fell 0.2% to $1,233.01.
· UK economy, gearing up for recovery, grows more than expected in March
Britain's economy grew by a stronger-than-expected 2.1% in March from February, gathering speed for what is expected to be a sharp bounce-back this year after its deep coronavirus slump of 2020, official data showed on Wednesday.
The growth was led by the retail sector, the reopening of schools and the construction sector as the country began to emerge from its COVID-19 winter shutdown.
Economists polled by Reuters had expected monthly growth of 1.3%.
· Japan prepares to vaccinate its Olympians, Paralympians
Japan is gearing up to offer COVID-19 vaccinations to around 2,500 Olympic and Paralympic athletes and support staff, using shots donated for the Games amid public anger over the slow pace of the country’s vaccine rollout.
Japan's coronavirus vaccine booking system crashes
Technical problems derailed Japan's coronavirus vaccination booking system on Wednesday, compounding frustration over the government's handling of new outbreaks of infections and an inoculation drive that critics say has been woefully slow.
· Taiwan may raise Covid alert level after cluster of 6 cases with no clear infection source
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