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Gold Holds Steady as Focus Shifts to U.S. Inflation Data

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May 11 Reuters Gold prices held steady on Tuesday as investors awaited U.S. consumer price data due later this week to measure whether inflationary pressure is building, with a weaker dollar and a pullback in Treasury yields supporting the metal.

Spot gold was unchanged at 1,835.41 per ounce by 0341 GMT, after hitting its highest since Feb. 11 at 1,845.06 on Monday.

U.S. gold futures were little changed at 1,836.90 per ounce.

Although gold extended higher earlier today, its struggling to continue building momentum and part of that is concern about inflation it isnt a given that those job numbers mean that the Fed wont act, DailyFX currency strategist Ilya Spivak said.

There is significant resistance for gold within the 1,8551,875 area, while support is around the 1,800 level, Spivak said.

Benchmark U.S. 10year Treasury yields were pinned below 1.6, reducing the opportunity cost of holding nonyielding gold.

Making gold less expensive for other currency holders, the dollar index hovered close to a more than twomonth low hit in the previous session after U.S. nonfarm payrolls data on Friday showed jobs growth unexpectedly slowed in April.

Bank of Japan policymakers warned of risks to the countrys economic recovery as pandemic curbs weighed on service consumption.

Investors are waiting for the U.S. consumer price index report due on Wednesday to gauge inflationary pressure and the Federal reserves policy stance.

Fed officials would like to see higher inflation,…

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