WASHINGTON (dpa-AFX) - Gold edged higher on Wednesday as rising coronavirus cases across the United States and other countries spurred some safe-haven buying. The upside was capped by bets on early tapering by the U.S. Federal Reserve.
Spot gold rose 0.4 percent to $1,735.07 per ounce, after having declined for four straight sessions. U.S. gold futures were up 0.3 percent at $1,736.40.
The U.S. dollar climbed against its main rivals and Euro zone bond yields tracked U.S. Treasury yields higher, denting bullion's appeal.
As Fed officials talk up the prospects of unwinding some of the fiscal stimulus, investors await U.S. consumer inflation data later in the day for additional clues on the outlook for monetary policy.
Economists currently expect consumer prices to climb by 0.5 percent in July after advancing by 0.9 percent in June. The annual rate of consumer price growth is expected to slow to 5.3 percent from 5.4 percent.
A high reading could influence the Fed's timeline to taper monetary stimulus, though the next Fed meeting is not scheduled until September.
Chicago Fed president Charles Evans said on Tuesday that the current surge in prices shouldn't push the Fed to tighten monetary policy prematurely.
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