Gold Locked in a Narrow Range as Investors Await Inflation Data

Gold prices were little changed on Wednesday as falling US Treasury yields ahead of the widely expected strong inflation data kept gold investors on the lookout.

And the price of gold in spot transactions rose 0.1 percent to $ 1827.20 an ounce, and US futures settled at $ 1828.40.

Analysts expect gold prices to remain largely near current levels until US January CPI data, which may provide further indications about the pace of interest rate hikes.

While a strong inflation reading is expected to lift gold prices as a hedge, an increase in US interest rates will raise the opportunity cost of the non-interest-bearing metal.

US 10-year Treasury yields have fallen from their highest level since November 2019 reached in the previous session, while the dollar has stabilized, but remains far from its lowest level recorded on Friday.

As for other precious metals, the price of silver increased 0.1 percent to $23.19 an ounce, after hitting its highest level since January 27.

Platinum rose 0.1 percent to $1032.88, and palladium fell 0.3 percent to $2240.53.