Gold edged higher on Thursday, buoyed by hopes that the U.S. Federal reserve may not hike interest rates anytime soon, but a jump in U.S. Treasury yields following a bigger-than-expected rise in April’s U.S. consumer prices capped gains.
* Spot gold was up 0.2% at $1,819.71 per ounce by 0116 GMT.
* U.S. gold futures eased 0.2% to $1,819.10.
* U.S. consumer prices increased by the most in nearly 12 years in April, as booming demand amid a reopening economy pushed against supply constraints, which could add fuel to financial market fears of a lengthy period of higher inflation.
* The data has put investors on high alert for more signs of inflationary pressure that could tilt the U.S. Federal Reserve toward raising interest rates.
* However, Fed Vice Chair Richard Clarida said on Wednesday it would be “some time” before the economy is healed enough for the central bank to consider scaling back its support.
* Benchmark U.S. 10-year Treasury yields hit their highest in more than a month. Higher bond yields increase the opportunity cost of holding non-yielding gold. [US/]
* U.S. President Joe Biden said on Wednesday he sees room for a compromise on his proposal for trillions of dollars in infrastructure spending after meeting with Republican leaders, but will move forward without the opposition party if necessary.
* Asian shares faced a third day of losses. [MKTS/GLOB]
* A measure of British house price inflation hit its highest level in four decades in April as buyers raced to take advantage of an extended tax break, a survey showed on Thursday.
* Palladium gained 1.7% to $2,903.68 per ounce.
* Silver rose 0.5% to $27.16 per ounce, while platinum was up 0.4% at $1,214.10.