Gold Continues to Follow Sideways Against Dollar Pressure
Gold continues its horizontal course at a level close to the three-month low before the US inflation data.
Gold Continues to Follow Sideways Against Dollar Pressure. Gold, which was suppressed by the strengthening dollar ahead of the inflation data, maintains its position at the lowest level of the last three months.
While spot gold reached $1,832 an ounce in the first transactions, spot gold continued to be suppressed by the
Fed's interest rate hike and monetary policy tightening as part of the fight against inflation.
Thus, bond yields have increased and the US dollar has appreciated 5 percent since the end of March.
It is expected that the US inflation data will contain more clues for the path that the Fed will follow in the rate of increase in interest rates.
On the other hand, China's April inflation reached 2.1 percent, exceeding expectations as the quarantine increased food and fuel costs.
The closures caused by Covid-19 in the country, which is the world's largest gold buyer, continued to put pressure on the economic activity in the country, causing the demand for spot gold to remain low.