Gold edges past $1,900/oz mark as dollar, bond yields dip after US data

Gold prices edged above $1,900 an ounce level on Friday, supported by a pullback in the dollar and lower bond yields, after data showing a rise in U.S. inflation was viewed inadequate to alter the Federal Reserve’s easy monetary policy, Reuters reported.

Spot gold was up 0.1% at $1,900.40 per ounce, as of 0658 GMT. Prices have risen more than 0.5% this week.

U.S. gold futures rose 0.4% to $1,903.90 per ounce.

Data showed U.S. consumer prices rose solidly in May, leading to the biggest annual increase in nearly 13 years, while weekly jobless claims dropped to their lowest level in nearly 15 months last week, the report added.

“The rise in U.S. inflation failed to spark a tapering sell-off. That saw bond yields edge lower helping gold to bounce back,” said Jeffrey Halley, senior market analyst at OANDA.

The benchmark U.S. Treasury yields dropped to a three-month low, reducing the opportunity cost of holding non-interest bearing bullion. The dollar index, meanwhile, fell 0.1% after hitting a near one-week high in the previous session.

Spot gold’s break above $1,911 per ounce could lead to a gain into $1,932-$1,953 range, according to Reuters technical analyst Wang Tao. Silver rose 0.7% to $28.16 per ounce, while platinum gained 0.3% to $1,153.82. Palladium was steady at $2,775.73, but was on track for a weekly decline.

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