Gold prices took a hit on Wednesday as a cocktail of factors including a stronger dollar, rising bond yields, and hawkish statements from a Federal Reserve official dampened market sentiment ahead of the release of U.S. inflation data.
Spot gold tumbled by around 0.8% to $2,342.80 per ounce while U.S. gold futures saw a 0.6% decline, settling at $2,341.20 by mid-afternoon.
The surge in the dollar by 0.4% against other major currencies made gold more expensive for investors, while the U.S. 10-year Treasury yields soared to a near one-month high.
Minneapolis Fed Bank President Neel Kashkari’s comments advocating for waiting for significant inflation progress before considering rate cuts added to the bearish mood in the market.
Traders are now awaiting the release of the U.S. core personal consumption expenditures (PCE) price index report on Friday for further insights into potential rate adjustments.
Meanwhile, silver prices edged up slightly to $32.16 per ounce after reaching an 11-year high last week, benefitting from its status as a precious and industrial metal amid robust economic growth and high inflation.
On the other hand, platinum took a sharp dip of over 2% to $1,040.75 per ounce, and palladium also fell by about 0.9% to $964.67.
Analysts are keeping a close eye on market trends and upcoming data releases to gauge the impact on precious metal prices in the coming days.
