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Gold falls on firm yields, dollar; US inflation data in focus

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Gold prices slipped on Wednesday, weighed down by higher US Treasury yields and a slight rebound in the dollar ahead of the much-awaited US consumer price data due later in the day.

Gold falls on firm yields, dollar; US inflation data in focus
Gold prices slipped on Wednesday, weighed down by higher US Treasury yields and a slight rebound in the dollar ahead of the much-awaited US consumer price data due later in the day.
Spot gold was down 0.3 percent at $1,832.05 per ounce by 0646 GMT. US gold futures eased 0.1 percent to $1,833.60.
"The dollar has strengthened a little bit ... if the inflation rate is higher than expected, it could encourage central banks to consider tightening their monetary policies faster than expected," said Margaret Yang, a strategist at DailyFX.
The dollar index was up 0.2 percent, making gold less appealing for other currency holders.
Concerns of a potential acceleration in inflation dragged down the US currency to a more than two-month low in the previous session and drove Asian shares to two-month lows earlier on Wednesday.
The US consumer price data due at 1230 GMT is keenly awaited by market participants to gauge inflationary pressure.
Benchmark US 10-year Treasury yields scaled a more than one-week peak, increasing the opportunity cost of holding gold.
Some investors view gold as a hedge against higher inflation that could follow stimulus measures, but higher Treasury yields have weighed on non-yielding bullion's appeal this year.
"The 200-day moving average at $1851 an ounce remains formidable resistance, but gold now has clear support at $1820 an ounce," OANDA senior market analyst Jeffrey Halley said in a note.
Fed officials grappled on Tuesday with April's unexpectedly weak employment growth, maintaining faith in the US economic recovery but acknowledging the pace of the jobs recovery may prove choppier than anticipated.
Data on Tuesday showed US job openings surged to a record in March, reiterating that a shortage of workers was hampering job growth.
Palladium rose 0.5 percent to $2,951.60 per ounce. Silver slipped 0.7 percent to $27.45 per ounce, while platinum fell 0.2 percent to $1,233.01.

Market Movers

CompanyPriceChange%Loss
Adani Ports670.15 -36.55
Tata Steel1,121.10 -21.05
Coal India153.45 -2.10
Hero Motocorp2,938.40 -37.00
HDFC2,490.05 -31.40
CompanyPriceChange%Loss
NTPC118.40 -1.40
HDFC2,490.50 -31.05
ONGC125.35 -1.30
Maruti Suzuki7,048.00 -64.65
Axis Bank742.60 -6.90
CompanyPriceChange%Loss
Adani Ports670.15 -36.55 -5.17
Tata Steel1,121.10 -21.05 -1.84
Coal India153.45 -2.10 -1.35
Hero Motocorp2,938.40 -37.00 -1.24
HDFC2,490.05 -31.40 -1.25
CompanyPriceChange%Loss
NTPC118.40 -1.40 -1.17
HDFC2,490.50 -31.05 -1.23
ONGC125.35 -1.30 -1.03
Maruti Suzuki7,048.00 -64.65 -0.91
Axis Bank742.60 -6.90 -0.92

Currency

CompanyPriceChng%Chng
Dollar-Rupee73.71250.39000.53
Euro-Rupee88.48400.60400.69
Pound-Rupee103.24200.75900.74
Rupee-100 Yen0.66620.00380.57