WASHINGTON (dpa-AFX) - Gold edged lower on Friday, Treasury bond yields rose and the U.S. dollar strengthened against its major rivals after strong inflation data firmed bets of tighter monetary policy.
Spot gold dipped 0.4 percent to $1,989.71 per ounce, while U.S. gold futures were down 0.3 percent at 1,995.05.
The U.S. Labor Department reported on Thursday that U.S. consumer price index, a barometer of inflation, increased by 0.8 percent in February, or 7.9 percent year over year, marking the highest growth since January 1982.
The report fueled hopes for aggressive rate hikes by the Federal Reserve, with a 25 bps rate hike priced in for next week's FOMC meeting.
Investors were also reacting to the ECB's hawkish tilt on Thursday. The central bank said in a statement that it will end its bond-buying program in the third quarter, if economic data allows it.
'The Russia-Ukraine war will have a material impact on economic activity and inflation,' ECB President Christine Lagarde said at a news conference.
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