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Gold prices fell on Friday on the strength of the dollar, as some investors believe the recent surge in US consumer prices is temporary.
Spot gold fell 1% to $ 1,878.56 an ounce by 12:22 pm ET (1622 GMT). US gold futures fell 0.9% to $ 1,879.10.
The dollar index rose 0.6%, which made gold less attractive to investors holding other currencies.
TD Securities commodity strategist Daniel Ghali said gold failed to surpass $ 1,900 after US nonfarm employment and CPI data indicated that inflation hedge flows were slowing as physical flows weakened.
“The result should develop a pullback in gold,” he said, adding that while a pullback to $ 1,850 could occur in the short term, gold should be supported by soft central bank policies over the medium term.
Data on Thursday showed that US consumer prices rose sharply in May, but analysts say the jump is likely “temporary,” and therefore concerns about a tightening of Federal Reserve policy have subsided.
Physically, demand for gold increased this week in the leading centers in India and China, although dealers were still forced to offer discounts.
“Since the FOMC is unlikely to draw heightened attention to cuts next week, attention will be drawn to Jackson Hole in late August for any direction change announcements,” said Ole Hansen, head of commodity strategy at Saxo Bank. to the annual conference of central banks.
Palladium fell 0.1% to $ 2,773.01 and platinum fell 0.3% to $ 1,148.13.
Auto companies likely already foresaw the impact of the global semiconductor shortage and replenished their stocks of platinum and palladium autocatalysts, which limited its impact on price, according to TD Securities’ Gali.
Platinum and palladium are used in vehicles as catalysts to reduce emissions.
Meanwhile, silver fell 0.1% to $ 27.95 an ounce. (Reporting by Nakul Iyer in Bangalore; editing by Kirsten Donovan and Jonathan Oatis)