Gold pressured by firm dollar, higher yields as traders seek Fed clues

Gold prices were subdued, hurt by a stronger dollar and higher Treasury yields, while investors looked ahead to next week’s U.S. inflation reading for clues on when the Federal Reserve could begin cutting interest rates.

Spot gold was down 0.2% to $2,029.80 per ounce at 1236 GMT, with prices down 0.5% over the week. U.S. gold futures also lost 0.2% to $2,044.50 per ounce.

The dollar index remained on track for a weekly rise, making gold more expensive for holders of other currencies, while the U.S. 10-year Treasury yield also edged higher. [USD/][US/]

Jigar Trivedi, a senior analyst at Reliance Securities, said that Fed Chair Jerome Powell’s recent comments had reduced the probability of an interest rate cut in March, putting a cap on gold prices.

After several Fed policymakers this week said they would wait to cut rates until they were more confident that inflation would fall to 2%, all eyes will be on Tuesday’s U.S. consumer price index report.