Gold futures closed slightly higher on Thursday, increasing profits for the second day in a row as the dollar cut gains and bond yields plunged again.
A slightly weaker dollar and falling yields on long-term US bonds supported the rise in gold.
Traders reviewed data from the Labor Department, which showed US inflation hit a 13-year high in May. The data speaks
The dollar index, which rose to 90.31, fell to a low of 89.98 in morning trading and then climbed to 90.08, slightly lower from the previous close.
The yield on 10-year Treasuries fell to a low of 1.47%, a new low since early March.
Gold futures for August rose $ 0.90, or nearly 0.1%, to $ 1,896.40 an ounce, well below the daily low of $ 1,871.80. Gold futures rose almost 0.1% in the previous session.
Silver futures for July rose $ 0.029 to hit $ 28.031 an ounce, while July copper futures closed at $ 4.4850 a pound, $ 0.0460 less than the previous close.
Data released by the Labor Department showed a larger-than-expected rise in consumer prices in May. According to the data, the consumer price index in the US rose 0.6% in May after rising 0.8% in April. Economists had expected consumer prices to rise 0.4%.
The report also showed that consumer prices rose 5% in May from the same month a year ago, reflecting the largest jump since August 2008. The annual rate of growth in core consumer prices also accelerated to 3.8% in May, the largest jump since June 1992.
Other Labor Department data showed a modest decline in the number of first-time jobless claims in the United States. The report said the number of jobless claims fell to 376,000 from the previous week’s unreconsidered 385,000. Economists had expected the number of jobless claims to fall to 370,000.
The governing council of the European Central Bank, led by ECB President Christine Lagarde, today left key interest rates unchanged and kept the size of the pandemic emergency procurement program, or PEPP, at € 1,850 billion.
The ECB raised its forecasts for the eurozone’s growth for this year and next and said the risks to the forecasts are balanced. Policymakers also raised their inflation forecast by two years, but expect core inflationary pressures to remain low.
The material is provided by InstaForex – www.instaforex.com.