Gold Falls as Investors Analyze U.S. Inflation Data

By Gina Lee

Gold prices experienced a slight decline on Thursday morning in Asia as investors analyzed the latest U.S. Consumer Price Index (CPI) data. The report indicated that inflation remains elevated but may have peaked in April, which has alleviated some concerns about potential aggressive interest rate hikes from the Federal Reserve.

As of 11:12 PM ET (3:12 AM GMT), gold was down 0.01%, trading at $1,853.58. Meanwhile, the dollar, which typically moves in the opposite direction of gold, saw a slight increase.

Although U.S. inflation showed a minor reduction in April, it remained close to levels not seen in 40 years. The CPI rose by 0.3% month-over-month in April, marking the smallest increase since August, in contrast to the 1.2% spike recorded in March, which was the highest since September 2005.

The U.S. Federal Reserve raised its interest rate to 1% last week, marking the most significant increase in 22 years aimed at combating inflation. Investors are wary that the Fed’s tighter monetary policies may lead to an economic recession, with Treasury yields extending a decline to 2.90%.

On the data front, the U.S. is expected to release additional economic indicators later today. San Francisco Fed President Mary Daly is scheduled to speak on the same day.

In the precious metals market, silver saw a slight increase of 0.1%. In contrast, platinum decreased by 0.2%, while palladium fell by 0.7%.