Gold Muted as Rising Yields Counter Growth Concerns

Gold held around $1,850 an ounce in subdued trade on Thursday, as investors weighed concerns over economic growth against rising Treasury yields ahead of US inflation data that could guide the Federal Reserve’s rate hike timeline. The US consumer price index for May due out on Friday is expected to have gained 5.9% on the year, after an annual rise of 6.2% in April, based on consensus forecasts. The data will be crucial for the path of Fed policy and whether the central bank will keep raising interest rates beyond July. Meanwhile, risks to the global economic outlook arising from the war in Ukraine, rising borrowing costs, ongoing supply disruptions and high commodity prices continued to offer the bullion some support.