Gold down from a month’s peak, dollar and US bond yields rise

Gold fell today, Wednesday, from the highest level in a month, which was recorded in the previous session, however, prices remained in a relatively narrow range, as investors continue to be cautious in anticipation of US inflation data due to be released this week.

According to “Reuters” gold fell in spot transactions 0.2% to $ 1709.60 an ounce by 0644 GMT. And US gold futures fell 0.2 percent to $ 1712.30

Gold prices jumped more than two percent on Tuesday to surpass the important $1,700 level, benefiting from a decline in the dollar and bond yields, along with technical buying.

The dollar index rose 0.1 percent, making gold more expensive for buyers abroad. US bond yields also rose in Asian trading

Investors remain focused on the US CPI report due on Thursday. The data is likely to provide indications about the prospects for a rate hike by the Federal Reserve (the US central bank).

Wall Street economists expect a slowdown in both the monthly and annual core consumer price index to 0.5 percent and 6.5 percent, respectively, according to a Reuters poll.

Traders now expect a 67 percent chance of a 50 basis point rate hike, compared to a 33 percent chance of a 75 basis point rate hike at the Federal Reserve’s December meeting.

As for other precious metals, silver fell in spot transactions 0.2 percent to $21.29. Platinum rose 0.5 percent to $ 1002.76, while palladium fell 0.9 percent to $1,903.59.