Bengaluru — Gold prices edged lower on Monday as the dollar firmed after last week’s US inflation data supported the Federal Reserve’s outlook for future interest rate increases. Spot gold was 0.1% lower at $1,251.17/oz as of 3.52am GMT. US gold futures for August delivery were down 0.2% at $1,252.50/oz. The dollar strengthened against a basket of currencies and hit a fresh six-week high of ¥111.06, supported by the relative strength of the US economy and on prospects of further rate hikes from the Federal Reserve. "Monetary policy re-normalisation induces the strength in the dollar and with that weakening gold prices," said Mark To, head of research at Hong Kong’s Wing Fung Financial Group. The risk-aversion demand was not as significant as the impact of expected interest rate increases, To said. US consumer prices accelerated in the year to May, with a measure of underlying inflation hitting the Federal Reserve’s 2% target for the first time in six years, data showed on Friday. Th...
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