Precious Metals Preview: Gold Recovers From Fresh Three-Month Lows

11 May 2022 , 08:42 AM

COMEX Gold sees mild recovery after a sharp plunge below $1840 levels ahead of the key US inflation data due on Wednesday. The yellow metal dropped to fresh three-month lows of $1830 an ounce, slipping below the previous weeks low at $1,849.80. The precious metal managed to recover from February lows following upbeat China CPI data despite ongoing covid woes. Consumer prices in China were up 2.1 percent on year in April, exceeding expectations for an increase of 1.8 percent and was up from 1.5 percent in March. On a monthly basis, inflation rose 0.4 percent beating forecasts for a gain of 0.2 percent following the flat reading from the previous month. Producer prices spiked 8.0 percent on year, beating expectations for a gain of 7.7 percent but slowing from the 8.3 percent increase a month earlier. Besides, slight pullback in US treasury yields and dollar in early Asia is also benefitting gold to some extent. Powered by Commodity Insights