Gold prices fell slightly on Thursday as US 10-year Treasury yields recovered from some losses, but the precious metal remained near a one-week high hit the day before as the dollar continued its slide.
At 10:20 GMT, spot gold was down 0.1% at $1,823.24 an ounce. US gold futures fell 0.3% to $1,822.20.
In the previous session, bullion rose to $1,827.92, the highest level since Jan. 5.
“Gold’s performance is somewhat disappointing, given the completely seismic collapse of the US dollar, gold may have behaved as one would expect, but it did not reach $ 1,835 an ounce, given the inflation datasaid Ross Norman, an independent analyst.
Data on Wednesday showed US consumer prices rose in December, with the largest annual rise in inflation in nearly four decades, bolstering expectations that the Federal Reserve will start raising interest rates from March.
Gold is seen as a hedge against inflation, but the metal is highly sensitive to rising US interest rates, which increases the opportunity cost of holding interest-free bullion.
The yield on the 10-year US Treasury rose after falling in the last session, while the dollar index fell to a two-month low.
Among other precious metals, silver rose 0.2% to $23.15 an ounce, platinum fell 0.3% to $974.49, and palladium was little changed at $1,910.60.
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