March 15 (Reuters) – Gold prices edged down on Wednesday
due to an uptick in the U.S. dollar and bond yields, while
investors assessed the Federal Reserve’s rate-hike trajectory
after a closely-watched consumer prices report showed still-high
inflation.
FUNDAMENTALS
* Spot gold was down 0.1% at $1,901.24 per ounce, as
of 0052 GMT, having briefly slipped below the key $1,900 level
earlier in the session. U.S. gold futures fell 0.3% to
$1,905.30.
* The dollar index was up 0.1%, making bullion more
expensive for buyers holding other currencies. U.S. benchmark
10-year Treasury yields ticked higher.
* The Federal Reserve is seen raising its benchmark rate a
quarter of a percentage point at its policy meeting next week
and again in May, as a government report showed U.S. inflation
remained high in February, and concerns of a long-lasting
banking crisis eased.
* The Consumer Price Index (CPI) rose 0.4% last month after
accelerating 0.5% in January. In the 12 months through February,
the CPI increased 6%, marking the smallest year-on-year gain
since September 2021.
* Bullion is often seen as a hedge against inflation, but
the opportunity cost of holding the non-yielding asset rises
when interest rates are increased to bring down inflation.
* Fed Governor Michelle Bowman said on Tuesday the U.S.
banking system remains “resilient and on a solid foundation”.
* Spot silver edged down 0.1% to $21.67 per ounce,
platinum was 0.1% lower at $981.69 and palladium
lost 0.7% at $1,496.61.
DATA/EVENTS (GMT)
0200 China Urban Investment (YTD) YY Feb
0200 China Retail sales YY Feb
0200 China Unemp Rate Urban Area Feb
0745 France CPI (EU Norm) Final MM, YY Feb
1100 EU Reserve Assets Total Feb
1230 US PPI Machine Manuf’ing Feb
1230 US Retail Sales MM Feb
(Reporting by Kavya Guduru in Bengaluru; Editing by Sherry
Jacob-Phillips)
