Gold prices eased further on Wednesday amid a rise in the dollar while investors also awaited the US inflation data.The dollar hovered near recent 20-year highs, making greenback-priced bullion less attractive f
or other currency holders. Market participants will be keeping a close eye on US consumer price index (CPI) data for April due later in the day.
Gold futures on MCX NSE -3.03 % were trading lower by 0.45 per cent or Rs 226 down at Rs 50,360 per 10 grams. However, silver futures dropped about 0.53 per cent or Rs 319 to Rs 60,299 per kg.US inflation data due today will be watched to gauge its likely impact on the Fed’s rate hike plan, said Ravi Singh,
Vice President and Head of Research, ShareIndia.“The strength in the dollar is also putting pressure on gold prices and the Fed’s aim of bringing inflation down without derailing the economy is challenging amid this uncertainty caused by t
he Russia and Ukraine war,” he added.Gold is seen as a hedge against inflation and a safe store of value during times of political and economic crises but is highly sensitive to rising short-term US interest rates, which raise the opportunity cost of holding
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