WASHINGTON (dpa-AFX) - Gold futures settled lower on Wednesday as the dollar climbed higher and bond yields edged up after hawkish comments from some Fed officials prompted investors to scale back rate cut bets.
The dollar index climbed to 105.10, gaining nearly 0.5%.
Gold futures for May ended down by $14.90 or about 0.63% at $2,340.30 an ounce.
Silver futures for May ended up by $0.232 or about 0.73% at $32.203 an ounce. Copper futures dropped to about $4.7900 per pound, down $0.0650 or about 1.3%.
Traders reduced their rate cut expectations by the U.S. Federal Reserve after Minneapolis Fed President Neel Kashkari said he needs to see 'many more months of positive inflation data' before he would consider cutting interest rates.
The U.S. Commerce Department is due to release its report on personal income and spending for April on Friday. The data includes readings on inflation said to be preferred by the Federal Reserve.
The inflation data could have a significant impact on the outlook for interest rates ahead of the Fed's next monetary policy meeting on June 11-12.
On the geopolitical front, Iran-backed Houthis have reportedly fired five anti-ship ballistic missiles from Yemen into the Red Sea, raising concerns over maritime safety and adding to heightened tensions in the region.
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