Australia Markets closed

Gold Prices Rebound as U.S. Dollar Turns Lower

Gold prices regain some ground after U.S. inflation report - Gold prices rebounded on Tuesday, as data showing that U.S. consumer prices cooled in February sent the greenback lower and dampened expectations for aggressive rate hikes by the Federal Reserve.

Comex gold futures were up 0.36% at $1,325.6 a troy ounce by 09:00 a.m. ET (13:00 GMT).

The dollar weakened after data showed that U.S. consumer prices slowed last month, confirming that an anticipated pickup in inflation will probably be only gradual.

The report came after data on Friday showing a slowdown in wage growth dampened concerns over inflationary pressures and dampened expectations for four rate hikes by the Federal Reserve this year.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.13% at 89.77.

Gold is sensitive to moves in both U.S. rates and the dollar. A weaker dollar makes gold less expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding non-yielding assets such as bullion.

Elsewhere on the Comex, silver futures gained 0.45% to $16.60 a troy ounce.

Related Articles

Shell, Eni preempt any U.S. probe over Nigeria with filings

Oil rescued from price lows by Libyan supply disruption

Havens Just Aren't Safe Any More as Markets Rumble, Goldman Says