U.S. consumer prices rose by the most in 13 years in June
Dollar down 0.1 against rivals
July 14 Reuters Gold prices edged up on Wednesday as the U.S. Treasury yields and dollar eased slightly in Asia trade, though the main focus was on U.S. Federal Reserve Chair Jerome Powells testimony later in day following a robust rise in consumer prices.
Spot gold rose 0.3 to 1,812.65 per ounce by 0402 GMT, while U.S. gold futures were 0.2 higher at 1,813.10.
While gold has made gentle gains on the back of slightly lower dollar and yields, it has not been enough to decisively shift momentum higher, said Jeffrey Halley, a senior market analyst at OANDA.
Gold held up surprisingly well overnight after the CPI data propelled the dollar higher and lifted longdated bond yields. That should give some comfort to bullish investors that gold may finally be regaining its inflation hedging tailwind.
The dollar index ticked 0.1 lower, having seen its best daily percentage gain in nearly a month on Tuesday. Benchmark 10year yields also pulled back, which translates into lower opportunity cost of holding noninterest bearing gold.
Data on Tuesday showed U.S. consumer prices in June rose by the most in 13 years. Focus now shifts to Powells testimony before the Congress for any views on the rising price pressures and possible tightening of monetary policy.
Powell has repeatedly stated that higher inflation will be transitory, noting that he expected supply chains to normalize and adapt….