Gold Prices reacts after inflation report
Gold price wanes, as CPI reports indicate inflation is easing !
The most actively traded gold futures contract were flat at $2,043 a troy ounce after data showed that inflation eased in April.
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The most-actively traded gold futures contract were flat at $2,043 a troy ounce after data showed that inflation eased in April.#gold #inflation pic.twitter.com/bcLzz08H4u
— The_Journalbiz (@the_journalbiz) May 10, 2023
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Analysts say that the report—which reflects that inflation is cooling but lingers on—continues to make the case for the Federal Reserve to hold interest rates higher for longer.
That alone could ultimately boost government bond yields, which would decrease the appeal of holding gold that doesn’t pay any regular income.
Gold prices are hovering near new all-time highs this year, up more than 10%.
