Firm US Dollar weighs on Gold

Published on Jun 10, 2022 12:00

Gold fell back below $1850 levels amid a firm dollar tracking treasury yields on rising bets the Federal Reserve will resort to aggressive rate hikes to rein in inflation. The monthly U.S. consumer price index (CPI) data on Friday could signal whether the Fed will continue with its aggressive policy tightening. Gold futures for August was lower by nearly $4 at $1,846.95 an ounce. The benchmark U.S. 10-year Treasury yields held steady at the key 3% threshold, eroding gold`s appeal. The dollar index, which measures the greenback against six peers, was steady at 103.20 after a 0.7% overnight gain. Meanwhile, the European Central Bank (ECB) confirmed its intention to hike interest rates at its policy meeting next month and also signalled another rate hike in September in the event of inflation not cooling by then.