* ECB keeps policy unchanged
* Gold hit a weekly low of $ 1875.89 / oz (new everywhere, comments added, prices updated)
June 10 (Reuters) – Gold prices fell on Thursday amid a stronger dollar as investors awaited US inflation data to gauge the Federal Reserve’s monetary stance.
Spot gold fell 0.6% to $ 1,877.40 an ounce by 1153 GMT, hitting its lowest level since June 4 at $ 1,875.89.
US gold futures fell 0.8% to $ 1,879.40 an ounce.
The dollar index rose, making gold less attractive to holders of other currencies.
“Further signs of inflationary pressures could heighten appetite for gold … However, price increases could be limited by a stronger dollar if inflation concerns push US Treasury yields higher,” said Lukman Otunuga, senior analyst at FXTM.
Higher yields threaten gold’s attractiveness as a hedge against inflation by increasing the opportunity cost of owning interest-free bullion.
“There is a feeling in the market that the Fed has taken control of the market by stating that inflation is temporary, so everything is in the spotlight right now, whether it can be achieved or not,” said Ole Hansen, head of commodity strategy. Saxo. Bank.
Economists polled by Reuters expect long-awaited US consumer price index (CPI) data for May, due out at 12:30 GMT, to rise 0.4% after the CPI rose the most in April. in almost 12 years.
But according to Carsten Menke, analyst at Julius Baer, current inflation trends are unlikely to be “optimistic” for gold and silver.
Menke added that the current rise in prices is temporary and linked to the economic recovery, which is likely to signal an impending decline in gold prices.
Weekly US Unemployment Claims are also accepted at 12:30 GMT.
The European Central Bank said it will continue to conduct emergency bond purchases at a faster pace than at the start of the year, fearing that any retreat could sharply raise borrowing costs and stifle a long-delayed recovery.
Silver fell 0.4% to $ 27.64 an ounce, palladium fell 0.5% to $ 2,764.95 and platinum fell 0.9% to $ 1,140.16. (Reporting by Eileen Soren and Nakul Iyer in Bangalore; edited by Alexander Smith, Kirsten Donovan)