Spot gold slipped in early Asian trade as firmer bond yields, a steadier dollar and persistent rate-hike expectations outweighed support from softer U.S. inflation data and Middle East tensions tied to oil prices.
Gold was slightly lower in early Asian trading, with spot gold last cited down 0.1% at $4,057.13 an ounce after an earlier report said it was down 0.2% at $3,992.90. Analysts said firmer global bond yields, a steadier dollar and expectations for restrictive monetary policy continued to weigh on the metal, even as weaker-than-expected U.S. inflation data offered some support and Middle East tensions, including around the Strait of Hormuz, sustained safe-haven interest. Eleonex’s Stefan Arsenovic and Tickmill’s Joseph Dahrieh both said higher oil prices linked to regional risks could revive inflation concerns and reinforce expectations for tighter policy. Investors are watching upcoming U.S. inflation and labor-market data, as well as comments from Federal Reserve officials, for further signals on rates.