Gold sees modest losses after good gains in overnight trades

Published on May 10, 2023 14:34

COMEX Gold slipped in Asia session today, coming off a one week high with all eyes on the US inflation data due in evening. The US Fed last week raised interest rates by 25 bps as expected but indicated a pause in the hiking cycle. However, if the CPI data suggests price pressures rose faster than expected last month, it could lead to a reassessment of Fed rate cut expectations, especially after Friday’s stronger-than-expected US jobs data. COMEX gold futures for front month are trading down $6.30 or 0.32% at $2036.30 an ounce after jumping to as high as $2045.10 yesterday. Gold rallied yesterday despite dollar strength. Also from US yesterday, President Joe Biden and top lawmakers agreed to further talks aimed at breaking a deadlock over raising the $31.4 trillion U.S. debt limit, with just three weeks before the country may be forced into an unprecedented default.