Casting gold bars at the Gulidov plant of the Krasnoyarsk non-ferrous metal plant in Russia.
Kirill Kukhmar | TASS | Getty Images
Gold prices were weaker Thursday on the strength of the dollar as investors sat on the sidelines awaiting clearer signals on inflation and economic growth ahead of the US data release and the European Central Bank meeting later in the day.
Spot gold fell 0.2% to $ 1,885.51 an ounce as of 00:58 GMT.
US gold futures fell 0.4% to $ 1,888.80 an ounce.
The dollar index rose slightly to 90.137 against its competitors, which made gold less attractive to holders of other currencies.
Meanwhile, the yield on 10-year Treasuries fell below 1.50% for the first time since May 7, reducing the opportunity cost of owning interest-free bullion.
The ECB’s policy decision is due at 11.45 GMT, followed by the US CPI report on the same day, which is expected to provide additional clarity to policymakers on price increases and future support measures.
The ECB will almost certainly maintain a generous flood of stimulus at its policymakers’ meeting on Thursday, fearing that higher borrowing costs could stifle a still nascent recovery.
Haunted by memories of past US interest rate hikes, the world’s central banks are laying the groundwork for a transition to a life with less global incentives, with many countries already signaling their exit steps.
Wholesale prices in Japan rose 4.9% in May from a year earlier, the largest gain in 13 years, data showed on Thursday that higher commodity prices could hit companies slowly exiting pandemic COVID-19.
The SPDR Gold Trust, the world’s largest exchange-traded fund backed by gold, said its holdings rose 0.6% to 1,043.16 tons on Wednesday from 1,037.33 tons on Tuesday.
Silver fell 0.1% to $ 27.73 an ounce, palladium remained at $ 2,777.69 and platinum fell 0.2% to $ 1,147.56.