GOLD prices edged lower on Wednesday (Jun 12), weighed down by a stronger US dollar, as investors awaited key US inflation data and the Federal Reserve’s updated interest rate projections due later in the day.
Spot gold was down 0.2 per cent at US$2,311.80 per ounce, as at 0128 GMT. US gold futures rose 0.1 per cent to US$2,328.80.
The US dollar was up 0.1 per cent, making the greenback-priced bullion less attractive for other currency holders, while the benchmark US 10-year bond yield also rose.
The May consumer price index (CPI) inflation report, due at 1230 GMT, will be the next major data point to drive Fed expectations.
Fed policymakers will update their economic and interest rate projections when they conclude their two-day meeting later in the day.
Updated economic projections from Fed officials this week are expected to show fewer interest rate cuts than policymakers anticipated three months ago.
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Lower interest rates reduce the opportunity cost of holding non-yielding bullion.
Demand for gold in Asia is surging despite prices hovering near the record highs it hit in May, industry officials say, as buyers snap up the metal to hedge against geopolitical and economic uncertainty.
Gold producer Polymetal International plans to double output by 2029 through acquisitions in Central Asia and will halt dividends while pursuing that goal, it said on Tuesday in a strategy shift since the sale of its Russian assets.
Spot silver rose 0.2 per cent to US$29.33 per ounce, platinum was up 0.8 per cent at US$959.10 and palladium gained 1 per cent to US$892.45. REUTERS
