Gold gains ground on strong U.S. inflation data, weaker dollar

Shafaq News / Gold prices bounced off a more than one-week low on Tuesday after data showing a sharp rise in U.S. inflation bolstered bullion's appeal as an inflation hedge and weighed on the dollar, Reuters reported.

Spot gold climbed 0.8% to $1,745.94 per ounce by 1:42 p.m. EDT (1742 GMT), after earlier dipping to $1,722.67, its lowest mark since April 5. U.S. gold futures settled up

0.9% at $1,747.6.

U.S. consumer prices rose by the most in more than 8-1/2 years in March, kicking off what most economists expect will be a brief period of higher inflation.

The U.S. dollar slipped to three-week lows after the data, making gold cheaper for holders of other currencies, while benchmark 10-year Treasury yields also eased.

Further supporting safe-haven gold were concerns raised by U.S. health officials' decision to recommend a pause in the use

of Johnson & Johnson's COVID-19 vaccine, analysts said.

Among other precious metals, silver rose 2% to $25.34 per ounce.

Palladium gained 0.7% to $2,695.58 after climbing to its highest level since March 18 at $2,710.

Platinum fell 0.9% to $1,158.98 per ounce, having earlier dipped to its lowest price in two weeks at $1,151.86.