Gold flat as sticky US inflation tempers hopes for early rate cut

U.S. consumer prices increased more than expected in March amid rises in the costs of gasoline and shelter, casting further doubt on whether the Federal Reserve will start cutting interest rates in June.

prices were little changed on Thursday, as the U.S. dollar and yields firmed after hotter-than-expected data tempered hopes for an early interest rate cut.

FUNDAMENTALS

* Spot gold was unchanged at $2,337.99 per ounce, as of 0107 GMT. It hit a record high for an eighth straight session until Tuesday.

* U.S. gold futures edged 0.3% higher to $2,355.30 per ounce.

* The U.S. dollar index hovered near a five-month high hit in the previous session and U.S. Treasury yields spiked after the inflation data, making non-yielding bullion less attractive.

* U.S. consumer prices increased more than expected in March amid rises in the costs of gasoline and shelter, casting further doubt on whether the Federal Reserve will start cutting interest rates in June.

* officials worried last month that progress on inflation might have stalled, making a longer period of tight monetary policy necessary, according to the minutes of the U.S. central bank's March 19-20 meeting.

* Higher interest rates reduce the appeal of holding non-yielding gold.

* The Shanghai Futures Exchange (SHFE) will impose trading limits on its gold and copper contracts, it said on Wednesday, following sharp price rallies by both metals.

* Sibanye Stillwater said it may look to raise about $500 million through prepayment arrangements such as so-called metals streaming to shore up its cash position, even as the company sees an improvement in metal prices and the market outlook.

* Anglo American Platinum has not received offers for any of its South African assets, the mining company's chief executive said, following speculation over the possible sale of its higher-cost operations.

* Spot silver fell 0.3% to $27.89 per ounce, platinum edged up 0.5% to $964.20 and palladium lost 0.6% to $1,045.00.

Source: Commodities-Markets-Economic Times

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