Gold Holds Steady as Spotlight Shifts to U.S. Data

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U.S. 10year yields hover near 1month low

Fitch Solutions sees more upside to gold in next few months

Chinas May factory gate prices rise at fastest in over 12 yrs Recasts, adds comments, updates prices

June 9 Reuters Gold prices held steady on Wednesday as bond yields remained under pressure, with investors on the sidelines ahead of more data on U.S. inflation and the European Central Bank policy meeting.

U.S. benchmark 10year Treasury yields were hovering near more than a month low, while the dollar index held steady.

Spot gold was up 0.1 at 1,893.89 per ounce, as of 0331 GMT.

U.S. gold futures rose 0.1 to 1,896.60

What I am looking at is the buildup to the FOMC meeting … the Fed may start to discuss about taper and this is getting highlighted, Stephen Innes, managing partner at SPI Asset Management, said.

The market is still of the opinion that it the Fed is going to a dovish taper and we have inflation aspects, which should be relatively positive for gold.

The U.S. consumer price index report due on Thursday is expected to provide more clues on when the Federal Reserve will dial back monetary stimulus. The ECB policy meeting is also scheduled on the same day.

The U.S. central bank is expected to hold its policy meeting next week.

U.S. Treasury Secretary Janet Yellen on Sunday noted that a slightly higher interestrate environment would be a plus for societys point of view and the Feds point of view.

Data out of China showed May factory gate prices…

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