Internationally Gold Eases from 1-Month High

gold prices

Gold: slipped below $1,870 an ounce on Monday, easing from a one-month high hit earlier in the session, as red-hot US inflation data lifted the dollar and Treasury yields and dented demand for the safe-haven bullion.

US consumer prices unexpectedly accelerated to a fresh 40-year high of 8.6% in May, raising the likelihood that the Federal Reserve would continue with its 50-basis point rate hikes through September to combat inflation.

Meanwhile, gold briefly disconnected itself from moving inversely to the dollar on Friday as risk aversion dominated markets amid concerns over a potential blow to the US economy from aggressive monetary tightening.

The CPI data served as a wakeup call to financial markets that inflation remains entrenched and has real upside risks

About Haroon Khawaja

Haroon Khawaja Is a Journalist & CEO Of B-Trams , Ex Reporter At Geo News

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