Gold earnings in anticipation of US inflation announcements

Gold futures traded higher for a fourth straight day as a slowdown in US bond yields amid broadly expected strong US inflation data kept gold investors alert.

Gold futures for April delivery closed at $ 1,836.60, gaining 0.5%.

The volatility in metal prices could be explained by fluctuations in the dollar, “which obviously also has long-term and short-term links to inflation,” said Adam Kush, president of the Libertas Wealth Management Group, noting that investors are waiting for the results. for the US Consumer Price Index, which is expected to be released on Thursday.

While an announcement of strong inflation is expected to offset the strength of gold as a hedge against inflation, US interest rate hikes will increase its costs.

“It’s a bit confusing for gold prices, so on the one hand you have a slightly more stable US dollar and on the other hand, bond markets are recovering a little bit from the losses of the last two days,” said Peter Fertig, a Quantitative Commodity Research analyst.

The benchmark yields of the 10-year US bond fell from the high of November 2019 reached at the last meeting.

Meanwhile, some analysts, however, remain optimistic about gold markets in the near future.

“Essentially, the April gold futures contracts have the overall short-term technical advantage,” Jim Wyckoff, senior analyst at Kitco.com, wrote in a note.

The Kitco analyst said that the next short-term bearish bearish target for gold is pushing futures prices below stable technical support at the December low of $ 1,755.40.

In other metal trades on Comex, March silver lost 0.3% to $ 23.13 an ounce, after rising 0.5%.

March copper gained 1.7% to $ 4,538 a pound. April platinum added 0.1% to $ 1,036.70 an ounce and March delivery rose 0.2% to $ 1,269 an ounce.