Inflation brings gains for gold and the dollar limits them

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Gold prices “broke” from the two-week low, boosted by worries triggered by rising inflation, while on the other hand, the strengthening dollar and rising US bonds held gains.

Gold for August delivery gained 0.3% to $ 1,843.3 an ounce on Comex.

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“The issue of the gold market is still a worrying inflation, which is likely to keep a threshold below the market and generate slightly higher buying interest,” said Jim Wycoff, a senior Kitco analyst. “We are seeing some brief coverage in the futures market and a small hunt for cash market opportunities following the recent sales pressure.”

However, making gold more expensive for holders of other currencies, the dollar index gained 0.3%, while US bond yields also rose.

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“As the year progresses, we expect gold prices to return, although they will remain high compared to historical levels,” Standard Chartered said in a note.

Silver rose 1.1% to $ 21.88 an ounce, having hit a two-week low earlier.

July platinum rose 2.9% to $ 996.5 an ounce. The precious metal has now gone up for four consecutive sessions. August palladium lost 0.5% to $ 2,006 an ounce. Finally, copper futures for June delivery gained 0.81% to $ 4.33.

Source: Capital

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