WASHINGTON (dpa-AFX) - Gold prices were subdued on Friday, the dollar rose to an eight-day high and the U.S. 10-year yield held close to 2 percent, as a spike in U.S. inflation coupled with hawkish comments from a Federal Reserve official stoked concerns about an aggressive tightening of monetary policy.
Spot gold was marginally lower at $1,825.75 per ounce, while U.S. gold futures were down 0.6 percent at $1,826.75.
Overnight data showed that U.S. inflation accelerated more than expected to 7.5 percent on an annual basis in January, the highest reading since 1982.
Following the data, St. Louis Federal Reserve Bank President James Bullard said that he favoured a full percentage point of interest rate hikes by July.
Bullard added that he preferred a half-point hike in March but would defer to Powell.
The odds of a 50-basis point increase in the interest rate at the March FOMC meeting rose to 89.9 percent, according to the CME FedWatch Tool.
In economic releases, the University of Michigan's preliminary consumer sentiment index for February will be featured in the New York session.
Copyright(c) 2022 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2022 AFX News
