Gold rises following U.S. inflation data

Reuters

 

 

Gold rose on Tuesday as consumer prices for March hit their highest level since 1981, a sign to some investors that inflation could be peaking

Spot gold rose 0.93% at $1,971.66 per ounce after hitting its highest in nearly a month on Monday. U.S. gold futures rose 1.42% at $1,975.9

“A higher-than-expected headline U.S. CPI print may nudge spot gold closer to the psychologically important $2,000 level, considering bullion’s time-honored role as an inflation hedge,” said Han Tan, chief market analyst at Exinity

The dollar index touched above 100, testing last week’s near two-year high of 100.17, while the benchmark 10-year Treasury yield briefly rose to its highest since December 2018

A stronger dollar makes gold less attractive for other currency holders, while higher U.S. interest rates and yields increase the opportunity cost of holding bullion, which is also used as a hedge against inflationary pressures

Auto-catalyst metal palladium fell 3.03% to $2,358.45 per ounce, after hitting its highest since March 24 at $2,550.58 on Monday following the suspension of trading of the metal sourced from Russia in the London hub.

Spot silver rose 1.54% to $25.46 per ounce and platinum slipped 0.7% to $969.9

Scroll to Top