Bengaluru — Gold prices steadied near a more than nine-month low on Wednesday, as cautious investors awaited monthly US inflation data for cues on the road ahead for the Federal Reserve’s monetary policy.
“Traders are teetering on the edge of their seats ahead of US CPI”, and currency and gold investors are probably executing on a need-only basis, said Stephen Innes, managing partner at SPI Asset Management. With the market convinced the Fed will go with the jumbo hike at its July meeting, it feels like long positions in gold are still swimming upstream, but data showing inflation has peaked could mitigate rate-hike pressure and gold should catch a small flyer, Innes said.
The dollar held near 20-year highs, continuing to make greenback-priced gold less attractive for buyers holding other currencies. Benchmark US 10-year treasury yields rose, decreasing the appeal of non-yielding gold.