* Gold falls below $ 1,900 per ounce
* US consumer price index rose 0.6% in May.
* Impact of semiconductor shortage on PGM is limited – analyst (predicts, adds comment, updates prices)
June 11 (Reuters) – Gold prices fell Friday on the strength of the dollar as some investors gambled that the recent surge in US consumer prices was temporary.
Spot gold fell 0.9% to $ 1,881.80 an ounce by 10:07 am ET (1407 GMT). US gold futures fell 0.7% to $ 1,883.30.
The dollar index rose by 0.4%, which reduced the attractiveness of gold for investors holding other currencies.
Commodities strategist at TD Securities Daniel Ghali noted that US employment and CPI data failed to lift gold above $ 1,900, suggesting that inflation hedge flows are slowing as physical flows are weakening.
“The result should be a pullback in gold,” he said.
Gold is seen as a hedge against inflation.
While a short-term pullback to $ 1,850 is quite possible, gold prices in the medium term should be supported by the central bank’s dovish policy for the long term, Gali said.
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.
On the physical front, gold demand 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 rose 0.8% to $ 2,798.92 and platinum rose 0.1% to $ 1,151.52.
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.
Silver, meanwhile, was up 0.6% to $ 28.14 an ounce (Report by Nakul Iyer of Bangalore; editing by Kirsten Donovan).