Gold prices decline in early trade

9 May 2023 , 08:36 AM

As cautious market participants await U.S. inflation data that would affect the Federal Reserve’s policy course, gold prices declined during the early hours in Asia, on Tuesday.

Spot gold was down 0.1% at $2,020.22 per ounce. At $2,027.10, American gold futures were down 0.3%.

The dollar index increased by 0.1%, making gold less accessible to buyers from outside.

The consumer price index (CPI) numbers for the United States are coming on Wednesday.

Although American consumers stated last month that they anticipated slightly lower inflation in a year, the New York Federal Reserve’s research also revealed that Americans’ attitudes were not much affected by the bank strains that began in March.

Investors have assigned a 92% probability that the Fed will maintain interest rates at their present level in June.

On Monday, Treasury Secretary Janet Yellen warned that the U.S. economy would suffer severely if Congress failed to increase the $31.4 trillion federal debt ceiling, undermining the dollar’s position as the world’s reserve currency.

Spot silver lost 0.2% of its value at $25.52 per ounce, while platinum increased 0.2% to $1,072.51 and palladium remained unchanged at $1,553.50.

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