WASHINGTON (dpa-AFX) - Gold eked out modest gains on Wednesday while the dollar and bond yields dipped after Federal Reserve Chair Jerome Powell described the producer price index report as more mixed than hot, adding he doesn't expect the next move to be a rate hike.
Spot gold rose half a percent to $2,368.78 per ounce, while U.S. gold futures were up 0.6 percent at $2,374.25.
The dollar dipped to a one-month low versus the euro as investors await the release of key U.S. CPI data along with other reports on U.S. retail sales and homebuilder confidence later in the day for additional clues on the Fed's monetary policy path.
Economists expect U.S. consumer prices to climb by 0.4 percent in April, matching the increase seen in March.
The annual rate of consumer price growth is expected to dip to 3.4 percent in April from 3.4 percent in March, while the annual rate of core consumer price growth is expected to slow to 3.6 percent from 3.8 percent.
In the Middle East, fierce gun battles raged in northern Gaza's Jabalia and southern Rafah as Israeli military incursions intensified against Palestinian armed groups.
Media reports suggest that the Biden administration plans to move forward with more than $1 billion in weapons deals for Israel, after pausing a bomb shipment last week due to concerns over Israel's planned attack on Rafah.
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