By Brijesh Patel
(Reuters) – Gold prices fell to a week-long low on Thursday, pressured by a rise in US Treasury yields and the appreciation of the dollar, after a sharp slump in consumer prices boosted expectations. early interest rate hikes.
* At 0921 GMT, spot gold was down 0.1% at $ 1,814.21 an ounce, after hitting its lowest since May 6 at $ 1,811.74. Gold futures in the United States were down 0.5% at $ 1,814.20 an ounce.
* “Real yields continue to rise and there is speculation in the market that there could be a surprise adjustment at the Federal Reserve,” said Xiao Fu of Bank of China International.
* The return of benchmark 10-year Treasury notes hit its highest in more than a month, while the dollar advanced 0.2% against its rivals.
* A report released Wednesday showed US consumer prices experienced their biggest jump in nearly 12 years in April, intensifying concerns about accelerating inflation and betting on a Fed rate hike earlier than expected.
* However, Fed Vice President Richard Clarida said that the double surprise of weak employment data and strong inflation in April does not affect the central bank’s plans to maintain its support for the total opening of the economy.
* Investors are now focused on the US Unemployment Claims report, to be released later in the day, to be added to the Retail Sales report on Friday, in search of more clues about the recovery of the major World economy.
* In other precious metals, palladium was down 0.3% at $ 2,848.72 an ounce; silver was down 0.7% at $ 26.85; and platinum was 0.5% down at $ 1,203.50.
(Report by Brijesh Patel and Shreyansi Singh in Bengaluru; edited in Spanish by Carlos Serrano)