Latest News

Metals Stocks: Gold attempts bounce off 3-month low ahead of key inflation reading

Gold futures rose early Wednesday, bouncing after the lowest finish in three months, as traders awaited a highly anticipated reading on inflation.

Gold for June delivery
GC00,
+0.54%

GCM22,
+0.54%

rose $11.40, or 0.6%, to $1,852.40 an ounce on Comex, after ending Tuesday at its lowest since Feb. 10. July silver
SIN22,
+1.47%

jumped 36.6 cents, or 1.7%, to $21.79 an ounce after finishing at its lowest since July 20, 2020.

The April consumer price index, due at 8:30 a.m. Eastern, is expected to have climbed 8.1% annually from 8.6% the previous month, according to a survey of economists by Dow Jones and The Wall Street Journal. It would mark the first time in five months the index hasn’t climbed at the fastest rate in 40 years.

Core prices are expected to rise 0.4% from a 0.3% gain in March.

Gold has been under pressure as the U.S. dollar has rallied sharply versus its major rivals. The ICE U.S. Dollar Index
DXY,
-0.29%

has traded near a 20-year high, a weight on commodities priced in the currency, as it makes them more expensive to users of other currencies.

Rising Treasury yields, which have backed off this week from 3 1/2-year highs, have also been a headwind. Higher yields raise the opportunity cost of holding nonyielding assets.

“Gold remains in the danger zone if the $1,830 level breaks as that could trigger another wave of technical selling,” said Edward Moya, senior analyst at Oanda, in a note. “If Treasury yields end up lower following [Wednesday’s] inflation report and gold does not muster up a rally, some bullion investors could throw in the towel.”

July copper
HGN22,
+1.82%

rose 1.9% to $4.234 a pound.

July platinum
PLN22,
+2.49%

was up 2.8% at $973.60 an ounce, while June palladium
PAM22,
-0.40%

lost 0.9% to $2,026 an ounce.

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in:Latest News