By Anushree Mukherjee
(Reuters) – Gold eased on Thursday, pressured by a stronger U.S. dollar and rising Treasury yields, while investors awaited a key inflation report to assess the Federal Reserve’s policy path.
Spot gold fell 0.4% at $2,905.64 an ounce as of 0426 GMT.
U.S. gold futures also lost 0.4% to $2,918.20.
The dollar index rose 0.2% against its rivals to move further from the recent 11-week lows as vague pledges from U.S. President Donald Trump to impose tariffs on Europe and further delays to levies planned for Canada and Mexico stoked uncertainty. [USD/]
The benchmark 10-year U.S. Treasury yields rebounded, reducing the appeal of non-yielding gold. [US/]
“A light pickup in the dollar and U.S. Treasury yields seen to be pressuring gold a bit in this session,” said Ilya Spivak, head of global macro at Tastylive, adding that the overall uptrend for gold is broadly intact.
Several Fed officials are due to speak later in the day, offering more insights into the central bank’s policy easing this year.
Markets will next look to the Personal Consumption Expenditures (PCE) index, the Fed’s preferred inflation measure, due on Friday, for further confirmation of the Fed’s rate path.
The consensus forecast was for a PCE monthly index of 0.3%, unchanged from December 2024, according to a Reuters poll, while the core number is seen rising 0.3%, up from 0.2% in December.
“The markets are sensitive to growth concerns at the moment after dismal U.S. PMI data last week and any stronger-than-expected PCE outcomes that point away from Fed rate cuts in the near term might hurt gold,” Spivak added.
Traders currently see the Fed delivering 58 basis points worth of rate cuts by December, according to LSEG data.
Bullion is considered a safeguard against political risks and inflation, but higher interest rates dampen the non-yielding asset’s appeal.
Spot silver retreated 0.4% to $31.71 an ounce, platinum fell 0.4% to $961.57 and palladium shed 0.3% to $923.93.
(Reporting by Anushree Mukherjee in Bengaluru; Editing by Alan Barona, Rashmi Aich and Sumana Nandy)
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