Gold rises as dollar, bond yields decline after US data; silver drops 1.3%

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₹72,200- ₹72,500 in MCX. Indications of "higher for longer" interest rates boosted the dollar, which rose above 105, putting pressure on gold prices and leading to profit booking and increased volatility.

The upcoming PCE price index release on Friday is expected to be a key trigger for price movements, as inflation remains a significant concern," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.Also read: Gold Price Outlook: Motilal Oswal recommends ‘buy on dips’ on yellow metal; pegs upside target to ₹81,000The dollar retreated by 0.4 per cent following a surge to a two-week peak earlier, which increased the appeal of gold for holders of other currencies.U.S. Treasury yields declined subsequent to data revealing a slower growth rate for the world's largest economy in the first quarter than previously estimated.Concurrently, U.S.

jobless claims saw an increase in the latest reporting period.Attention is now directed towards the release of the Personal Consumption Expenditures (PCE) price index on Friday, serving as the Federal Reserve's favored gauge of inflation. This data could offer further insights into the timing of potential interest rate cuts by the Fed.As per the CME FedWatch Tool, traders currently assess approximately a 52 per cent probability of a Fed rate reduction by September.

Lower interest rates diminish the opportunity cost associated with holding gold, which does not yield interest.Also read: Oil prices hit 4-week high ahead of OPEC+ policy verdict, US demand hopes; Brent highest since May 1 at $85/bbl“Commodities basket as whole is trading in the negative territory, weighed by a stronger U.S. dollar as traders prefer to stay in lighter positions ahead of the U.S.