Gold Continues Higher as Dollar Softens Ahead of U.S. Inflation Data
Gold prices continued higher on Wednesday, as investors looked ahead to U.S. inflation data to gauge how it will impact the Federal Reserve’s view on monetary policy in the months ahead.
Comex gold futures were up around $6.00, or 0.4%, at $1,335.80 a troy ounce by 3:40AM ET (0840GMT). It reached its best level since Feb. 6 at $1,339.40 earlier in the session.
Gold futures scored back-to-back gains as the dollar weakened Tuesday. Dollar weakness usually benefits gold, as it boosts the metal’s appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
The greenback’s downward trend continued in early trade Wednesday. Against a basket of six major rival currencies, the dollar was a shade lower at 89.50, while the yield on the 10-year Treasury note eased back to around 2.83%.
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