Gold slips below 1,900oz mark
U.S. CPI rises 0.6 in May
Palladium on track for a weekly decline Recasts, adds comment, updates prices
June 11 Reuters Gold prices edged lower on Friday as the dollar held steady with some investors betting on rising U.S. consumer prices being temporary.
Spot gold was down 0.2 to 1,894.06 per ounce by 0913 GMT. U.S. gold futures rose 0.1 to 1,898.40.
Inflation has come a little bit on the higher side versus expectations, but the view remains that these inflation levels will level off from now on, UBS analyst Giovanni Staunovo said, adding gold is having difficulties sustaining above 1,900.
As long as it has difficulties to stay above that level there will be some investors using that to sell gold or build up short positions, Staunovo added.
Data showed U.S. consumer prices rose solidly in May, leading to the biggest annual increase in nearly 13 years, while jobless claims dropped to their lowest in nearly 15 months last week.
The dollar index rose 0.1, reducing golds appeal for investors holding other currencies.
But capping bullions losses by reducing the opportunity cost of holding noninterest bearing metal, benchmark U.S. Treasury yields touched a threemonth low.
Meanwhile, the European Central Bank on Thursday kept its monetary policy unchanged and pledged a steady flow of stimulus over the summer.
Focus now shifts to Feds June 1516 policy meeting. A significant number of Fed watchers according to a Reuters poll have said…