Gold dips on strong US Dollar, Treasury yields; silver at $31.98
Gold Price Outlook: Motilal Oswal recommends ‘buy on dips’ on yellow metal; pegs upside target to ₹81,000The dollar strengthened by 0.2 per cent compared to other currencies, resulting in higher prices for gold for holders of other currencies. Concurrently, the benchmark U.S. 10-year Treasury yields reached a nearly one-month high.Minneapolis Fed Bank President Neel Kashkari suggested on Tuesday that the U.S.
central bank should hold off on reducing interest rates until there's notable advancement in inflation.Traders are awaiting the release of the U.S. core personal consumption expenditures (PCE) price index report on Friday, which is the Fed's favored gauge of inflation. They hope this report will provide more insight into when and to what extent rate cuts might occur.In a surprising turn, U.S.
consumer confidence rose in May despite declining for three straight months. This uptick was driven by optimism surrounding the labor market, as revealed by a recent survey.Also read: Gold price jumps ahead of US GDP data release, silver rate rebounds after retracing from record high“Geopolitical tensions have added to the risk premium for gold as concerns about debt pose long-term challenges to overall growth. The economic indicators from the US continue to show strength in the economy.
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