Meanwhile, US consumer prices rose by the most in more than 8-1/2 years in March, kicking off what most economists expect will be a brief period of higher inflation.
“We needed to see some inflation to get gold moving and we saw it this morning with that CPI number”
Bob Haberkorn, senior market strategist, RJO Futures
The US dollar slipped to three-week lows after the data, making gold cheaper for holders of other currencies. Benchmark 10-year Treasury yields also drifted lower, which supported gold prices further.
“We needed to see some inflation to get gold moving and we saw it this morning with that CPI number,” Bob Haberkorn, senior market strategist at RJO Futures, told Reuters.
Further supporting safe-haven gold were concerns raised by US health officials’ decision to recommend a pause in the use of Johnson & Johnson’s covid-19 vaccine, analysts said.
“At the moment, we need to see a decisive breakout above $1,765 in order to spark another wave of buying up to $1,800,” said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.
“The $1,750 level has been a strong resistance, so we’re getting up near that level,” he said, adding that geopolitical risk tied to news of Iran stepping up its nuclear enrichment had also sparked buying in precious metals.
(With files from Reuters)
