Marked ingots of 99.99 percent pure gold are placed in a cart at the Krastsvetmet non-ferrous metals plant in the Siberian city of Krasnoyarsk, Russia March 10, 2022. REUTERS/Alexander Manzyuk/File photo
Gold prices held near one-month lows on Friday, shrugging off cooler-than-expected U.S. inflation figures for last month, with bullion staying on course to wrap up its worst week in seven as the U.S. dollar and bond yields stood strong.
Spot gold edged 0.1 percent higher to $1,913.95 per ounce by 0347 GMT, but traded near its lowest level since July 7 touched earlier in the day. U.S. gold futures were down 0.1 percent at $1,946.20.
Gold gained as much as 0.8 percent on Thursday after data showed the U.S. consumer price index (CPI) climbed 3.2 percent on an annual basis, but was less than the Reuters poll forecast of 3.3 percent, raising bets that the U.S. central bank will unlikely hike interest rates again in 2023.
Interest rate increases weigh on gold because they tend to lift bond yields and in turn raise the opportunity cost of holding non-yielding bullion.
“Once the CPI dust had settled, markets seemed to remember that core CPI at 4.7 percent is still not great – even if it was slower than expected,” said Matt Simpson, a senior analyst at City Index, adding that gold’s move higher lacked conviction.
“We also had Fed member Mary Daly putting a fly in the dovish ointment, saying whether another hold or hike at the Fed’s next meeting is ‘yet to be determined’. And that saw the U.S. dollar regain its strength.”
Gold prices have slid about 1.4 percent so far in the week as the U.S. dollar index and benchmark 10-year Treasury bond yields were both on track for their fourth consecutive weekly gain.
Among other precious metals, spot silver rose 0.2 percent to $22.72 an ounce and platinum added nearly 1 percent to $915.06. Still, both were on track for their fourth straight weekly loss.
Palladium jumped 0.9 percent to $1,298.30, eyeing its best week since mid-June.