An employee holds one kilogram gold bullion at the YLG Bullion International Co. headquarters in Bangkok, Thailand, on Friday, Dec. 22, 2023.
Gold prices edged lower on Wednesday as the U.S. dollar and Treasury yields held firm ahead of key inflation data, which could offer more clarity on the Federal Reserve's interest rate trajectory.
The dollar firmed 0.1%, making gold less attractive for other currency holders, while benchmark U.S. 10-year bond yields rose to multi-week peaks.
"Investors will try to position themselves in gold because overall long-term fundamentals are looking pretty strong for gold at the moment."
While gold is used as a hedge against inflation, rate hikes raise the opportunity cost of holding non-yielding bullion.
Persons:
Soni Kumari, Tim Waterer
Organizations:
Co, U.S ., Treasury, ANZ, KCM, Traders, BHP, Monetary Fund
Locations:
Bangkok, Thailand, U.S, China