PRECIOUS METALS-Gold is down on the strength of the dollar ahead of inflation data in the US

Por Amy Caren Daniel

Nov 10 (Reuters) – Gold prices fell on Wednesday as the dollar and bond yields strengthened ahead of the release of US inflation data that could help investors gauge the direction of the market. monetary policy of the Federal Reserve.

* At 0944 GMT, spot gold was down 0.3% to $ 1,825.40 an ounce, while US gold futures for December delivery fell 0.2% to $ 1,826.50 .

* “Gold has been losing momentum ahead of inflation data … a stronger than expected reading in US consumer prices would once again blow the wind out of the gold sails,” said Craig Erlam, OANDA analyst.

* The price of the bullion has remained at two-month highs in recent sessions, after major central banks assured last week that interest rates will remain low for the time being, while the Fed remained firm in its opinion that inflation is “transitory.”

* The precious metal benefits from low rates, as they reduce the opportunity cost of owning gold, which does not accrue interest.

* A tight labor market in the United States and disruptions in global supply chains could result in a high reading of consumer prices in the United States at 1330 GMT.

* Increasing the pressure on gold, the yield on benchmark 10-year bonds rose to 1.4762%. For its part, the dollar advanced 0.1% against its rivals, making gold more expensive for holders of other currencies.

* In other precious metals, spot silver was down 0.3% at $ 24.22 an ounce; platinum was down 0.6% at $ 1,052.83; and palladium was 0.4% down at $ 2,013.60.

(Edited in Spanish by Carlos Serrano)



Reference-www.infobae.com

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