Gold Gains Despite Higher U.S. Treasury Yields, Weaker Dollar Lends Support

by Ashitha Shivaprasad
Yahoo! Finance

(Reuters) – Gold prices firmed on a weaker dollar on Thursday, even as U.S. Treasury yields rose after economic data showed signs of persistent inflation, lowering hopes of the Federal Reserve cutting interest rates anytime soon.

Spot gold rose 0.8% to $2,333.79 per ounce by 2:07 p.m. ET (1807 GMT). Prices were down nearly $100 from an all-time high of $2,431.29 scaled on April 12, fuelled by geopolitical turmoil.

U.S. gold futures settled 0.2% higher at $2,342.5.

The dollar eased in tight seesaw trade after data showed that U.S. economic growth slowed more than expected in the first quarter, but an increase in inflation suggested the Fed would not cut interest rates before September.

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