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Gold struggles for momentum as traders await key US inflation data
Gold prices struggled for momentum in early Asian trading as traders awaited key U.S. inflation numbers. Strong data prints and hawkish comments from Federal Reserve officials have raised expectations of more rate hikes. Spot gold remained flat at $1,908.33 per ounce, while U.S. gold futures fell slightly to $1,916.40. The dollar index stayed near a two-week high, making gold relatively expensive for holders of other currencies. Investors are now predicting an 89% chance of a 25-basis point rate hike in July, which could discourage investment in non-yielding gold.