Gold bounces back as dollar, Treasury yields dragged by U.S. inflation data
After being down during the previous session on strengthening dollar, gold bounced back on Thursday trade in Asia as weaker-than-expected U.S. inflation data dragged Treasury yields and the greenback.
Gold futures added 0.42% at $1,729 as the dollar, which moves inversely to gold, fell on Thursday. U.S. Treasury yields, along with the dollar, retreated as the released data on consumer prices erased the assets’ earlier gains over unmoved expectations of inflation hike.
The greenback’s decline was stirred by U.S. core consumer prices data released on Wednesday. The 0.1% growth month-on-month in February did not meet the 0.2% growth forecasts by analysts. Prices rose 1.3% year-on-year, slightly slower versus the 1.4% growth prediction, and the 1.4% growth recorded in January.
In other precious metals, silver and platinum closed on the winning track as they improved 0.1% 0.4% respectively. On the losing side was palladium with a 0.4% fall.