Gold slides on stronger U.S. dollar, Yields down

Gold prices fell on Thursday as the dollar recorded a fresh two-decade peak in line with lower treasury yields after April U.S. inflation data was above expectations, so the Federal Reserve would stick to its aggressive rate-hike.

According to Reuters, spot gold prices declined 0.4% or $7.30 to trade at $1846.7 per ounce by 1101 GMT.

On the other hand, the US gold futures were down 0.1% to $1851.70 per ounce.

The U.S. dollar index rose to new 20-year highs on concerns of strong inflation. This drove investors away from the yellow metal.

It is worth noting that the inflation reading, Consumer Price Index (CPI), which had grew 8.3% in April (Y/Y), comes on the heels of the Fed raising its benchmark overnight interest rate by an aggressive half-a-percentage point last week, the most in 22 years.

Gold is considered a tool to hedge against higher inflation, but it has been curbed by strong US dollar.