Gold prices slip

13 April, 2021 12:00 AM printer

BENGALURU: Gold prices fell on Monday, weighed down by surging US Treasury yields and a firmer dollar after better-than-expected US economic data lifted prospects for higher inflation.

Spot gold fell 0.3 per cent to US$1,738.12 per ounce by 3.50am GMT. US gold futures were down 0.4 per cent to US$1,737.70 per ounce, report agencies.

“Stronger-than-expected data suggests that inflation (will be) picking up faster-than expected in months to come, which is leading to a rise in real yields, exerting pressure on gold,” said Margaret Yang, a strategist at DailyFX.

Producer prices in the United States rose more than anticipated in March, resulting in the highest annual rise in 9-1/2 years and signalling the start of higher inflation as the economy reopens amid strengthened public health and substantial government assistance.