Gold prices fell on Friday, dragged down by a stronger dollar, as some investors bet that recent rises in US consumer prices are temporary..
And gold fell in spot transactions 0.9 percent to $ 1881.80 an ounce by 1407 GMT. US gold futures fell 0.7 percent to $1,883.30.
The dollar index rose 0.4%, which reduces the appetite for the metal for investors holding other currencies.
A commodity analyst at TD Securities said US employment and consumer price index data failed to push gold above the $1,900 level, suggesting that inflation hedge flows were slowing at the same time as present flows were declining..
“As a result, gold will incur losses,” he said“.
Gold is a hedge against inflation.
Thursday’s data revealed that US consumer prices rose strongly in May, but analysts say the increase is likely to be fleeting, and thus fears about the Federal Reserve’s tightening policy have eased..
As for other precious metals, palladium rose 0.8 percent to $ 2798.92 an ounce and platinum advanced 0.1 percent to $ 1151.52.
Silver rose 0.6 percent to $28.14 an ounce
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