Gold prices eased on Friday and the dollar held steady as investor focus shifted to the Fed’s June 15-16 policy meeting.
Spot gold dipped 0.3 percent to $1,892.72 per ounce, while U.S. gold futures were down 0.1 percent at $1,894.95.
U.S. bond yields fell to three-month lows amid bets that any shift in ultra-accommodative policy is unlikely to happen soon.
Overnight data showed that U.S. consumer prices rose 5 percent in May, the biggest annual since 2008 and more than economists had expected.
But the data reinforced hopes that rising price pressures will be transitory and the central bank is unlikely to withdraw monetary support any time soon.
Euro zone government bond yields also fell after a dovish outcome to Thursday’s ECB meeting.
After maintaining an elevated pace of pandemic emergency bond purchases (PEPP) for the third quarter, the European Central Bank said that inflation would remain below the central bank’s target of just under 2 percent through 2023.
Investors await the Federal Reserve’s monetary policy meeting next week for more clues about the state of the economy and policy outlook.
The University of Michigan’s U.S. preliminary consumer sentiment index for June will be featured in the New York session.
The material has been provided by InstaForex Company – www.instaforex.com