Gold rises on softer dollar, yields ahead of US inflation data

economictimes.indiatimes.com:

Gold prices edged higher on Wednesday after the greenback and bond yields retreated as investors cautiously awaited U.S. inflation data that could offer more cues on the Federal Reserve's rate-hike policy path. * Spot gold rose 0.2% to $1,935.39 per ounce by 0053 GMT.

U.S. gold futures also gained 0.2% to $1,940.40. * Making gold cheaper for holders of other currencies, the dollar index fell 0.2% to its lowest level since May 11.

Benchmark 10-year U.S. Treasury yields also slipped to their lowest in nearly a week. * While a few Fed members said on Monday the central bank was close to ending its monetary policy tightening, Fed Bank of New York President John Williams reiterated that the central bank was not done raising its short-term rate target on Tuesday.

* Investors now await inflation data for June due at 1230 GMT, with economists polled by Reuters expecting the consumer price index to have risen by 3.1%, after May's 4% jump, while core rates are expected to have dropped to 5% from 5.3%. * Markets see a 92% chance of the Fed raising rates by 25 basis points at their policy meeting on July 25-26, as per CME's Fedwatch tool. * Gold is used as a safe investment during times of political and financial uncertainty, but higher interest rates increase the opportunity cost of holding non-yielding bullion.