Gold prices slipped on Thursday, as
Treasury yields and the dollar rose, with bullion’s outlook hurt
by fears the Federal Reserve could go for a more aggressive
interest rate hike this month, after data showed US inflation
sky-rocketed in June.
* Spot gold fell 0.4% to $1,728.39 per ounce by 0100
GMT. US gold futures dropped 0.5% to $1,726.60.
* The dollar edged up towards 20-year highs, hurting
demand for greenback-priced gold among buyers holding other
* Benchmark US 10-year Treasury yields rose, weighing on
Appetite for zero-yield gold.
* US annual consumer prices jumped 9.1% in June, the
sharpest spike in more than four decades, leaving Americans to
dig deeper to pay for gasoline, food, healthcare and rents.
* Markets swung wildly on Wednesday, as the euro touched
parity versus the dollar for the first time in 20 years, while
investors also feared larger Fed rate hikes could be on the way.
* The Fed is seen ramping up its battle with sky-high
inflation with a supersized 100 basis points rate hike at its
upcoming policy meeting on July 26-27.
* Although gold is seen as an inflation hedge, higher rates
hurt the appeal of bullion, which bears no interest.
* A rallying dollar sent gold prices to a near one-year low
on Wednesday following the inflation report, but a retreat in
the greenback helped bullion make a sharp recovery and end the
* SPDR Gold Trust , the world’s largest gold-backed
exchange-traded fund, said its holdings fell 0.17% to 1,019.79
tonnes on Wednesday from 1,021.53 tonnes on Tuesday.
* Spot silver fell 0.4% to $19.11 per ounce, platinum
slipped 0.8% to $847.75, and palladium eased 0.5%
0130 Australia Employment June
0130 Australia Unemployment Rate June
1230 US Initial Jobless Clm Weekly
(Reporting by Bharat Govind Gautam in Bengaluru; Editing by